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Author Topic: CVC deal for 35% of Prem  (Read 1509 times)

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AllyMac

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Re: CVC deal for 35% of Prem
« Reply #30 on: Friday 21-Dec-2018, 10:31* »
eh? They will take 35% of it only I believe?

They've purchased 37%, so they will expect to receive 37% of the revenue. CVC will not be involved in the day to day running of the league, but instead will bring their "expertise" to the commercial side of things, including sponsorship and TV revenue.  However, and this is where the problem lies, the majority of Premier Rugby's income is generated from TV and sponsorship, and therefore in order just to stand still, CVC will have to increase TV and sponsorship revenue by approximately 150% per annum. Given that sponsorship and TV deals are normally for a set period of time, unless the timing of this has been done to coincide with the renewal of these contracts, the clubs are going to be a lot worse off in the initial years. Therefore, the idea that the money is going to be spent on infrastructure will not come to fruition, as the money will need to be spent on the day to day running costs of the clubs, or for paying down debt.

 

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