OTT to play a key role in sports growth

Increased revenue from broadcasters is driving money to the top football clubs, but the entrance of OTT players into football rights bidding could prevent a plateau.

In the 2018/19 season, the top 20 football clubs by revenue earned a combined €9.3 billion, up 11% on the previous season according to Deloitte’s Football Money League. Of that €939 million increase, €575 million came from increased broadcast revenues (up 16% year on year).

TV rights used to dominate football clubs’ income. The surging costs of showing games, led by the likes of the Premier League, also led to a surge in club revenues, resulting in a situation where the most expensive football transfer in 1996 was £15 million (Alan Shearer to Newcastle United) but by 2017, it was £198 million (Brazilian Neymar from Barcelona to Paris St Germain).

Now, the top-placed clubs are far less reliant on broadcast revenue than smaller clubs. The primary source of revenue for the top five clubs is commercial (49% of the total), compared to clubs placed 16 to 20 where 65% of their revenue comes from broadcast, according to the report.

What has driven those rights values even higher is competition. In the UK, the entry of BT Sport into football rights led to Sky spending…