Cancellation of Premier League TV deal a ‘significant impact of COVID-19 and a shock to the league’

Expert data analysts GlobalData believe the cancellation of the largest overseas TV deal with China’s PPTV and the Premier League is the first significant COVID-19 impact, and will be a shock to the league.
TV cameras at Turf MoorTV cameras at Turf Moor
TV cameras at Turf Moor

The deal, worth more than £650m over three years to the league, has been terminated, ending PPTV’s right to show live coverage of English top flight games with immediate effect.

It leaves a big gap in the Premier League’s finances, just one year into the contract.

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PPTV - owned by Suning, which also has control of Inter Milan, withheld a payment of around £160m in March. expressing concerns surrounding the pandemic and the financial issues it has created.

A Premier League statement said: “The Premier League confirms that it has today terminated its agreements for Premier League coverage in China with its licensee in that territory. The Premier League will not be commenting further on the matter at this stage.”

Conrad Wiacek, Head of Analysis and Consulting at GlobalData Sport, said: “The cancellation of the Premier League’s largest overseas TV deal with China’s PPTV, worth in excess of $700m (£650m) over three years, will come as a shock to the Premier League and may suggest that further hard times are on the way.

”With the next Premier League rights cycle due to begin in 2022, the league will be looking at new options in a bid to shore up its international rights portfolio.

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“The league generates in excess of $9bn per rights cycle, with the deal with PPTV its largest individual international rights deal.

”With heightened political tensions impacting UK/Chinese relations, this termination may be seen as an extension of this political battle.”

”However, PPTV owners Sunning withheld a previous payment worth $160m in March 2020 at the height of the COVID-19 pandemic, meaning this is likely to be a direct impact of the pandemic.

“Suning also owns Inter Milan, who play in the Italian Serie A, and with PPTV’s deal to broadcast Serie A ending in 2021, this could be a way for PPTV to consolidate its resources into one property and territory.

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”This could be an issue for the Premier League, who will be keen to ensure that their broadcast rights contracts continue to grow. If the growth cannot come from abroad, then the Premier League may be forced to make more live games available domestically, something the government is strongly pushing for.”

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