The price of failure this season? A cool £9 million!
TV money The latest figures for TV and prize money have been released, and they don't make good reading for the finance wizards at Newcastle United.
The figures have revealed that revenue from prize money and TV income has dropped by roughly 20% following the disappointing 16th placed finish this term.
United's high-flying fifth placed finish last season earned them £54.2m in TV and prize money compared to only (only, I know...) £45.1m this term. The reduction in revenue wasn't all to do with league placing however as we saw ourselves broadcast less this term (16 times this season compared to 18 last season) which accounts for just over £1m of the difference, and it's also worth noting that these figures don't include any payments made for games broadcast in the Europa League, League Cup or FA Cup.
How is it all worked out?
Each Premier League team receives a fixed amount from UK broadcasting rights which is 50% of the total pot split between the twenty clubs equating to £13,803,038. All overseas broadcasting rights are also split equally between the twenty clubs giving each club another £18,931,726, or a total of £32,734,764.
This is then supplemented by "facility fees" which account for a further 25% of the total UK broadcasting rights pot which are awarded each time a team is televised. Each televised game is worth £578,326 with each club guaranteed to be shown at least ten times throughout the season. United were shown 16 times giving us facility fees totalling £8,654,602.
The remaining 25% of the UK broadcasting rights pot is then split depending on league position called "merit payments", with each position in the Premier League worth £775,881. So QPR received the basic £775,881 with each position above that adding another £775,881. United finished fifth bottom so 5 x £775,881 = £3,779,405.
Equal share - £32,734,764
Facility fees - £8,654,602
Merit payment - £3,779,405
Add all that together and you get a total of £45,168,771. It's all here on the Premier League website if you wish to have a nosey.
As mentioned earlier though these figures are for the Premier League only so they might not end up being as bad as they look right now and I expect a few million of that to be made back up meaning that in the end we actually won't be too far off what we made last season.
Next season will be more interesting however. Manchester United earned just over £60m for winning the Premier league this season but that figure is expected to rise to roughly £100m for the eventual winners next season. It won't be us so put those dreams on hold, but an increase in revenue should be felt throughout the league.
What happens with that money is an entirely different debate however...
