The Premier League, the most watched football league in the world, is suing Chinese broadcaster PPLive Sports International.
According to the Premier League, PPLive failed to make payments for the broadcasting rights to showcase live games and footage of the world’s richest football league amounting PPLive to be sued for US$215.3 million. According to a court filing, PPLive are being sued US$210.3 million for not making payments to show live games and US$5 million for highlight packages.
Its currently a troubling time for all sport across the globe as the financial impact of covid-19 has had a disastrous effect, one in which brings a great amount of uncertainty. To prevent the spread of the deadly virus governments have placed restrictions on public gatherings causing for football clubs’ revenues to decrease dramatically.
Even though the Premier League has some of the wealthiest broadcasting agreements, the lack of fans attending fixtures, rebates from broadcasters and the re-scheduling of matches has placed clubs in immense difficulty.
A subsidiary of Suning, PPLive claim that they’ve paid half of the agreement and are taking legal action against the football league. Although, the league has already substituted PPlive by signing a new deal with Tencent to broadcast Premier League fixtures in China.
Richard Masters, Chief Executive for the Premier League, said that failure to welcome fans into stadiums will cost each club £700 million in lost revenue for the 2020-21 season. With that in consideration, the Premier League generates the most revenue across world football when you compare the figures with the other big European leagues. However, according to Deloitte, the league is expected to lose around £1 billion (US$1.3 billion) in sales for last season because of coronavirus.
Within the new one-year agreement with Tenant, it includes a fee and a revenue-sharing agreement with all 20 Premier League members which is dependent upon subscriber numbers. The streaming service currently have 114 million video subscribes and a five-year deal with the National Basketball Association (NBA) worth US$1.5 billion. Something which the Premier League hope will benefit the league to tackle the challenges covid-19 presents.
Author: James Parker