Sky and BT will lose £1bn if sporting events are cancelled untill August

uneasydaz

Well-Known Member
Sky and BT will lose almost £1bn in revenue if top-flight sport remains shut down until August, according to a report that recommends players take a pay cut to support their clubs.

In England, the Premier League has postponed matches until at least 30 April, and it appears increasingly unlikely that the league will resume then as the government’s nationwide lockdown is expected to continue for months.

The hypothesis informing governments assumes an initial three-month long lockdown,” said Enders Analysis, which published the report. “Group activities of 25 people involving close physical contact without protection will not plausibly be the first to be allowed when when some social life resumes.”

Sky has stopped charging commercial clients such as pubs that carry Sky Sports, and pay-TV subscribers can “pause” their payments. BT has told customers to call to “discuss their contract or other options”, while some customers on its flexible pay-TV package can elect to drop sport.

“Assuming a worst-case scenario of a four-month suspension of all sports coverage (British and foreign), with all sports subscribers pausing their contract and wholesale clients being allowed to follow suit, Sky would lose £700m and BT £228m in revenues,” Enders said.

The report says that beyond July Sky and BT will start saving money if sport remains off screens as upcoming rights payments would be postponed or cancelled.

Sky and BT are due to pay the Premier League the six-month licence fee for the first half of the 2020-21 season, which amounts to about £530m in total, in July. BT’s annual bill to Uefa for the Champions League rights is £394m.

The report suggests players need to play their part as clubs struggle economically, with wages accounting for 59% of revenues across the Premier League.

Football’s cost structure is pretty simple: most of the receipts flow into players’ pockets,” the report says. “The best solution is collectively negotiated pay cuts, but negotiating pay cuts with players is as difficult as herding cats.”

One top-flight German club has reached a deal with players and another is in talks. In France, Lyon has put players on the public “temporary” unemployment scheme, which should cut pay bills by half.

“To limit disruption, pain will have to be shared across the supply chain with players’ pay first in line,” the Enders report says.
 

BigDGrant

Well-Known Member
%^*& them.They have ruined the Champions League with their closed shop for the bigger countries and %^*& the rest of you attitude.%^*& them for the absolute stupid amount of money being thrown at the EPL and the rest of you can live off the scraps.%^*& them for having a monopoly in almost all sporting events.
Reap what you sow.
 

tomster

Active Member
The obscene amounts of money they throw a some sports or leagues is why they are going to lose as much money. The will make the money back by increasing subscriptions over the next few years.
 

Gogso

Well-Known Member
They created the EPL, Boxing and F1 monsters.

Their customers have been overpaying for years and they have reaped the profits.

Those monsters still need fed,

You reap what you sow. ;)
F1 has already committed to free to air TV contracts as current agreements wash out.
 

Gazb1962

Well-Known Member
%^*& them.They have ruined the Champions League with their closed shop for the bigger countries and %^*& the rest of you attitude.%^*& them for the absolute stupid amount of money being thrown at the EPL and the rest of you can live off the scraps.%^*& them for having a monopoly in almost all sporting events.
Reap what you sow.
Your post nails it mate.
They throw mega money at the EPL teams and the leftovers to SPL teams.
Won’t be popular but I think Rangers and Celtic globally are up there more than most of the teams in the EPL.
Also think we would hold our own against them with the money on offer.
 

Coops2016

Well-Known Member
The only issue will be after all this the bills go up massively. That said they would have to be careful not to price the customers out of affordability
 

Now and forever

Well-Known Member
Careful what you wish for.

If money starts dropping out of football in big ways, Scottish football will suffer more than most.
It's bad news as they will try and claw the money for contracts back in and that will ensure they dont null and void the league.
 

BigDGrant

Well-Known Member
Your post nails it mate.
They throw mega money at the EPL teams and the leftovers to SPL teams.
Won’t be popular but I think Rangers and Celtic globally are up there more than most of the teams in the EPL.
Also think we would hold our own against them with the money on offer.
Theres maybe about 5 teams that are the size of us and with the same money who knows what would happen.
 

Oduwa

Well-Known Member
Official Ticketer
I'm guessing all the folk that always take pride in these stories about the EPL and Sky's demise are the kind who watch football on a grainy screen that buffers repeatedly and see a goal five minutes after its mentioned on a match thread?
 

Arkansasgerstill

Well-Known Member
Careful what you wish for.

If money starts dropping out of football in big ways, Scottish football will suffer more than most.
...So the frontline football country who statistically rely most on fans through the gate for their income will somehow suffer most? Yeah right!
 

Watty1979

Well-Known Member
The only issue will be after all this the bills go up massively. That said they would have to be careful not to price the customers out of affordability
I doubt there will be much appetite for customers to be renewing contracts at current levels never mind massive increases, once this pandemic is over with and the economic impact is clear.
 
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