Sports Big Business No. 2785, welcome to pay attention to the leading sports industry information platform
Wen | Zhuang Tour
Sports big business reporter
Recently, Ernst & Young (EY), one of the world's four largest accounting firms, released a report called "Premier League Economic and Social Impact" in January 2022. The report was also cited by the Premier League official relevant data, and a number of related articles were published on the league's official website. The sports big business reporter compiled some of the report.
The report is divided into six major sections: overview, economic role, growth cycle, world league, support for the career pyramid system, and support for the community, and a detailed analysis of the impact of the Premier League on the Economy and society of England as the largest commercial league in football.
The 19/20 Premier League clubs are geographically distributed
The report points out that not only the Premier League itself has achieved gold absorption, but also brought great value to the government, society and communities. The Premier League generated a total of £7.6 billion (65.8 billion yuan) in the 19/20 season and generated about £3.6 billion (about 31.2 billion yuan) in taxes, of which the salaries of players alone directly generated £1.4 billion in taxes. Compared to the 98/99 season, the tax contribution in the 19/20 season increased by £3.1 billion.
In the 2019/20 season, the Premier League reached 3.16 billion spectators worldwide, almost double the Number of Champions League participants (Note: According to a report released by FIFA, the World Cup in Russia has a global viewership of 3.572 billion, of which 655.7 million Chinese have watched the 2018 World Cup). From the 1998/99 season to the present, the revenue generated by the Premier League has increased by 840%, and the direct creation of jobs by the club has risen from about 11,000 to around 87,000, an increase of 650%. The league created 94,000 jobs.
The 3.16 billion spectators worldwide are twice as large as the Champions League
Overseas broadcast revenue steadily exceeded that of West Italy, Germany and France combined
In the report, perhaps the most "Versailles" part is the comparison of the number of global spectators in the Premier League and overseas copyright revenue.
The report cites Nielsen's data to show that the cumulative number of viewers in the Premier League world has reached a staggering 3.16 billion, almost double the Champions League's 1.625 billion, far ahead of the other four major leagues (Bundesliga 1.6 billion, La Liga 1.559 billion, Serie A 1.202 billion, Ligue 1 392 million).
Cumulative viewers of major European football matches
In terms of overseas copyright sales, the Premier League is even more unique. Due to the huge gap with the other four major leagues for many years, EY directly used the data of the four major leagues in West Italy, Germany and France to compare with the Premier League in the comparison chart. The results show that the Premier League has maintained a long-term advantage over the sum of the four major leagues in overseas broadcast revenue. In the 19/20 season, the Premier League's overseas broadcast revenue was £1.4 billion, with the other four major leagues combined at £1.2 billion.
However, it is worth pointing out that the Premier League has completed the sale of Premier League copyrights in the new cycle in the past few months. In the US market, the Premier League and NBC have reached a six-year, $2.7 billion copyright contract, more than double the value of the previous cycle of 150 million/season, and further widen the gap with other leagues.
Recently, according to the Times, the Premier League and Disney Media Company reached an agreement on the copyright of the new cycle (22-25) in 10 South American countries, worth 250 million pounds for 3 years, an increase of 35% over the previous cycle.
After the epidemic, the copyright value of the other four major leagues has fluctuated in various markets, changing the previous upward trend, such as the local copyright in the new la Liga cycle is only basically the same as the previous cycle. Serie A's copyright in the Middle East and North Africa region has been in a state of circulation. Professional football video products have also appeared to eat all the phenomenon, matthew effect or let the Premier League in the future and other leagues to further open up the copyright value gap.
Another benefit of high copyright income is that the "rich-poor gap" between the premier league's top clubs and bottom clubs is the lowest among the five major leagues. This is reflected in the game itself, which closes the squad gap between the teams and makes the game more suspenseful.
However, the Premier League has also suffered losses during the epidemic. In the 19/20 and 20/21 seasons, the combined loss of broadcast revenue and matchday revenue in the Premier League reached £1.3 billion, and the cumulative number of spectators decreased by 18 million.
According to the Premier League, a part of the broadcast revenue will be used to support the lower leagues and grassroots football. In the 19/20 season, the ratio was around 15%. Since 2012, £455 million has been used to prop up the national league at the bottom of the football pyramid.
However, in the compensation for the Championship, a considerable proportion is compensated by parachute mechanism, giving clubs relegated from the Premier League to the Championship, and the inclusiveness still needs to be improved. According to the recommendations mentioned in the recently released "English Football Governance Fan Review Report", the Premier League may further impose a "solidarity tax" in the future for the construction of grass-roots football and low-level leagues.
However, even if England's league system is still imperfect, domestic fans and industry insiders are still seeking changes that are more conducive to long-term development, and English professional football still has high reference significance for all other football leagues in the world, including the four major leagues.
The report also mentioned that in the 2020 European Championship, the members of the national teams of the participating countries, the largest number from the Premier League, were 117, and the total number of international footballers contributed by the Championship was 34, riding in the european sub-league. The Number of Champions Leagues even exceeds the number of internationals in France's entire league system and closes the number of internationals in Spain's entire league system. The Championship remains a bellwether in the european sub-divisions.
In addition, although there is no mandatory regulation, the Premier League's U23 players still play 50% more time in the 19/20 season than the average of the previous three seasons. Between the 12/13 season and the 20/21 season, the Premier League invested a total of £1.6 billion in more than 90 academies, and finally reaped the fruits.
The Premier League generates around £3.6 billion in taxes each year
Promote employment, promote tourism, and provide public welfare services
According to the report, the Premier League contributed £7.6 billion in the 19/20 season, and the Economy of the Premier League has grown by 840% so far in the 98/99 season.
Meanwhile, the Premier League created 94,000 jobs, and by the 19/20 season, the club had directly created around 87,000 jobs, an increase of around 650%.
In the 19/20 season, the Premier League generated around £3.6 billion in taxes, of which £1.4 billion came from player salary taxes. In the 98/99 season, the Premier League contributed £400 million in taxes, £1 billion in the 07/08 season, £2.3 billion in the 13/14 season and £3.5 billion in the 19/20 season. In 21 years, that number has risen by 750%, and even when inflation is taken into account, the actual increase is 390%.
Of the 19/20 Premier League revenue as a whole, £1.5 billion came from local copyright and league sponsorship revenue, £1.4 billion from overseas copyright revenue, £600 million from matchday revenue and £1.6 billion from other club revenues.
In addition to the social value created by the Premier League itself, the Premier League has also brought a huge diversion effect to the local tourism industry in England/Wales.
According to the Website Bridge, in 2011 the value of foreign tourists entering football tourism was 880 million euros, and the number of tourists was 808,000. In 2019, the total inbound tourism output value of overseas tourists driven by the Premier League reached 1.7 billion euros, and the number of inbound tourists reached 1.5 million, with a per capita consumption of 1075 euros, 31% higher than the world average. Among them, more than 2/3 of overseas tourists chose October-March, the most competitive month in the Premier League, to enter the UK for tourism, which shows that sports events have a prominent driving effect on the tourism industry.
In addition, the Premier League's drive to attract foreign investment for investment is also obvious. After investors such as Abramovich, Mansour, and Saudi sovereign funds entered, in addition to investing in the team to enhance competitiveness, it also played a role in promoting the infrastructure around the team.
The Premier League also plays an important role in community infrastructure, with a cumulative investment of £384 million into public funds, involving 996 artificial turf pitches and 9459 plastic turf pitches.
According to the report, the Premier League has donated around £35 million to the UK health sector, communities and social groups during the COVID-19 pandemic, providing 1.5 million meals. In the fight against the epidemic, it has played a social welfare role in the sports industry.