Premier League clubs are advocating for a larger portion of the increasingly profitable football data deal, a move that could intensify existing tensions with the English Football League (EFL). Under the current contract terms, both the Premier League and EFL receive an equal share of the revenue generated from the collective sale of their data rights, amounting to approximately £35 million per year for each league. In contrast, the Scottish Premier League receives a notably smaller share, with the deal worth only a few million pounds for clubs north of the border.
The Premier League and EFL are joint shareholders in Football DataCo, the company responsible for managing the collection and sale of their data. Historically, the commercial value of this deal has been modest, but it has surged in recent years due to the exponential growth in football betting and the enhanced use of data by broadcasters. Several Premier League clubs believe they should receive a greater share of the profits, arguing that they have been the primary drivers of this growth.
The financial distribution has been adjusted in the past to favor the Premier League, particularly before the data revolution when Football DataCo's primary role was managing the distribution of results and fixture lists. During that period, the EFL received about 50% of the revenue to reflect the higher number of matches in their competitions. This year, Football DataCo signed a new four-year contract with Genius Sports as their official data provider, which will commence next season. Under this deal, Genius will capture and distribute live data for over 4,000 games per season, which is then sold to numerous betting companies and broadcasters worldwide.
Several Premier League clubs are urging for a larger share of the profits when the new deal takes effect next season. The Premier League is obligated to consider such requests from its clubs, although any changes to the distribution arrangements would require the agreement of both the EFL and SPL. The Premier League declined to comment, but sources indicate that all parties are satisfied with the current performance and future prospects of the DataCo deal. The emergence of this issue coincides with already strained relations between the Premier League and EFL, particularly over the powers of the new Independent Football Regulator and the contentious issue of parachute payments.
Furthermore, ongoing negotiations between the two organizations over a new financial settlement, known as the 'New Deal for Football,' remain unresolved. Despite the wealth of their clubs, the Premier League's central funds are under pressure due to a significant increase in legal fees, primarily from cases related to profit and sustainability rules (PSR) and associated party transactions (APT) brought against Manchester City, Everton, and Nottingham Forest. The Premier League's annual legal bill has surged nearly tenfold to around £50 million over the past two years, making a larger share from data deals more crucial.
The Premier League's internal cohesion is also being tested ahead of a club meeting on Friday to discuss potential changes to the competition's APT regulations. The Premier League aims to secure a vote on proposed amendments to the rules, but Manchester City has called for a pause in the process, a stance supported by Aston Villa, who want the vote to be canceled. The Premier League will only proceed with a ballot if they are confident of achieving the two-thirds majority required for the new rules to be implemented.
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