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English Premier League is one of the biggest sports properties of the world. The product has attracted considerable football market share, and it is already achieved the tag of richest football league in the world. The revenue is going up at a significant rate and one report indicates that from 2008-09 season Premiership clubs will share a whopping 900 million Pound Sterling of television rights among them. The growth of the EPL is momentous and reviewing the figures of EPL only suggests that it has made a rapid progress after its inception in 1992. The first television right was worth 191 Million Pound Sterling over five seasons. In 1997-98 season it rose to an incredible 670 million over four seasons and in August 2004 the value went up to 1.024 Billion over three years and in 2007 Sky and Setanta Sports brought the rights for 1.7 billion and that does not include overseas, deferred live, mobile revenues, etc. and if that is estimated then the ultimate figure goes up to 2.5 billion pounds for three years.
It is not that EPL was only successful in attracting the revenue but there is been a significant change in other aspects of EPL as well. EPL is continuously evolving and it is vibrant in nature. The ownership of many EPL clubs have changed hands in last five years, and on regular basis there is news on new acquisition related stories. The new owners have increased buying power of the clubs by allowing the managers to spend more on quality recruits, and thus overall investment in the clubs have gone up significantly. One of the reports suggest that cumulative revenue of 20 EPL clubs have increased to 11 percent (compare to preceding season) with a overall revenue of 2.5 billion pound sterling in 2006-07 season.
The above stats only indicate that EPL is a strong and vibrant brand. The expansion and diversification valuation of EPL is high and that might have triggered EPL to plan the overseas round of EPL matches involving EPL teams. The overseas 39th round fixture would have definitely attracted further revenue from international market. One round overseas fixture could have resulted in selling 9 additional television rights on a venue or country specific rights, and the numerous sponsors and co-sponsors. EPL no doubt provides adequate scope to explore the domestic market in Asia, America, Africa and other parts of the world. Further the clubs would have gained additional revenue out of this venture. The reality is that EPL is a massive product and its brand value is tremendous and therefore it was easy for EPL to penetrate further in the sports market of other countries. But the question is how the venture could have helped the local football market and stakeholders of overseas venue?
The overseas venture could have resulted in massive profit to EPL and its clubs but it would have definitely taken away major crunch of sponsorship funds out of the domestic market and there would have been a crisis in the domestic market for the domestic football properties. The one EPL match might have attracted more than twenty times the sponsorship amount the local football property attracts for entire season or more. Further more sponsors would have queued up for EPL matches, and no one would have made the investment in the local property considering the brand value and mileage. That situation would be catastrophic for local football. No doubt EPL match will attract all attention from media and public, and stadium would be full to capacity but it would have brought doom to local football in terms its sustainability, growth and popularity.
EPL overseas plan were well received by EPL fans across the world but governing bodies of the game stepped in at the right time, and made the right noise and thus overseas venture of EPL has been put to the cold storage for the time being, that what it appears for the moment. In short if EPL decides to throw its plan of 39th round to dustbin then it helps the world football from many angles.
It is not that there is no scope of EPL expansion without the overseas plan but definitely EPL can expand within United Kingdom first, and strong clubs of Scotland, Wales, etc. can be included in its expansion plan.
Finally, I am of the strong opinion that EPL rounds should not take place at the overseas venues considering the above mentioned facts. Though I am the fan of EPL and love to see Arsenal on the weekends but my aim is to see similar property growing in India in the next few decades.
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