Premier League to spark huge transfer spending spree with early release of £8billion TV deal

Big deal: £96m TV cash for each Premier club… and they will get it early
Christopher Lee/Getty Images
James Olley20 January 2016

EXCLUSIVE

The Premier League are set to trigger a summer of unprecedented spending by releasing the new £8 billion television windfall a month early in July.

Clubs usually receive the vast majority of their League income in August to coincide with the start of a new season but it is believed they have lobbied to obtain that money sooner to help with cashflow during the summer transfer window.

Standard Sport understands the Premier League have verbally communicated they will agree to the request, helping newly promoted sides with their bonus payments to players and freeing up clubs to spend earlier should they wish. Formal written confirmation of the move is expected to be sent to clubs by the end of next month.

Sky and BT Sport agreed to pay a total of £5.14bn for the rights to show live football domestically during the three-year period beginning next season, which represents a staggering 71 per cent increase on the previous deal.

Overseas rights are expected to be confirmed in the next few weeks with the total income set to top £8bn and clubs will benefit earlier than ever.

The exact figures are yet to be finalised as the overseas deals have not been agreed, while the Premier League are awaiting the verdict of an Ofcom investigation into the domestic deals with Sky and BT Sport.

However, Standard Sport has obtained detailed projections made by certain clubs for the 2016-17 season which highlight the cash injection English football is set to enjoy this summer.

Clubs previously received at least £60.9 million from TV revenue and the Premier League’s central commercial contract but that figure is set to rise to something in the region of £96m.

In addition, the merit money — a payment made to each club based on their final League position — is also set for a huge hike.

The 2016-17 champions will receive around £37.75m for finishing first — an increase from last season’s £24.9m — while the club finishing 20th are set to earn approximately £14m with each place above higher worth an additional £1.25m.

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QPR, who finished bottom of the table last year, were awarded a merit payment of just £1.24m.

Clubs relegated to the Championship already receive parachute payments to help adjust to the overall reduction in income but these are also set to rise.

The initial payment has increased by £7m to £32.5m in the first season after relegation. The two subsequent years will go up by a total of £9m to £14.4m each year. An overall rise of £16m will only fuel anger at the advantage afforded those dropping down from the top-flight in the race promotion over those clubs already in the Championship not benefiting from such additional income.

The increase in TV income was already expected to propel clubs into greater transfer activity but the early payment will enable them to avoid a mad scramble for signings as deadline day approaches.

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