April 13, 2024

Everton: Premier League’s new media deal has only 50% of the inflation projected by 777 Partners


The new Premier League media deal only represents half the projected annual increase forecast by prospective new Everton owners 777 Partners, according to The Esk.

The Everton financial expert, who has been featured in the Daily Mail, reported via their Twitter account on Tuesday (5 December) that the new four-year deal which will begin in the 2025/26 season only represents a four per cent increase.

777 Partners had predicted in “Project Echo”, its capital raising document, that the Premier League’s TV deal would have an eight per cent annual increase, so the new domestic media deal only represents half what the Miami-based firm expected.

The deal is slightly lower because tech companies such as Amazon have given up their attempt to take a slice of the Premier League’s rights. The increased amount of games now selected for broadcast means clubs are now earning slightly less per game.

Unprepared

When “Project Echo” was unveiled by 777 Partners, it received plenty of criticism from a number of financially minded people describing it as a “painfully skewed” sales pitch designed to make the American firm seem like an excellent investment opportunity [The Athletic, 6 November].

Part of that skewed sales pitch appears to be part of their projection that the Premier League’s domestic media rights would have inflated by eight per cent, rather than the actual four per cent that has been agreed upon for four years from 2025.

Since it was announced that 777 had agreed on a deal to acquire Farhad Moshiri’s 94.1 per cent stake in Everton, there seems to have been an influx in the controversy surrounding the American company that has really thrown into question whether or not they are suitable to take over the Toffees.

In the long list of reasons why 777 may not be the best potential owners for Sean Dyche’s side, a miscalculation of how much the television rights of the Premier League will have inflated year by year is by no means the most controversial.

But those who were interested in investing capital into Project Echo under the impression the media rights would have risen by eight per cent may well not be as keen when they learn it has only inflated by four per cent.

It’s just another poor look for the potential new Everton owners.

Leave a Reply

Your email address will not be published. Required fields are marked *