4 TV providers are tightening their offer
- Guaranteed net club revenues of €180 million per year
- Guaranteed wide distribution in the Netherlands, with direct impact on advertising and sponsorship revenues
- Guaranteed non-exclusivity with direct impact on very realistic new revenue streams
- Guaranteed continuation of high-quality channels and programs
- Guaranteed clear brand positioning, branding under the Eredivisie name
- Guaranteed sustained competition, ensuring the Eredivisie remains affordable for football fans and TV viewers in the Netherlands
The consortium of DELTA Fiber, VodafoneZiggo, KPN, and T-Mobile Nederland, which wants to exploit Eredivisie television rights in partnership with the clubs, is to present a tighter proposal to put an end to all the confusion that has arisen in recent days. The eighteen Eredivisie clubs will be guaranteed at least €180 million (net) per year for the rights to live Eredivisie matches. This was confirmed today in a letter to the ECV and the clubs.
The consortium recently announced that it had submitted a proposal to the ECV and the clubs seeking to exploit the rights in a new way that would free up more money for the clubs. Projections of total net revenues for the clubs amount to more than €200 million. In recent days, discussions with several clubs revealed that there was still some confusion and ambiguity about the guaranteed amount that would be paid to the clubs each year. The consortium has now clarified in a letter that a guaranteed net amount of €180 million will flow to the clubs every year.
In the current system, TV providers pay roughly the same amount for the distribution rights, but they pay it to the current rights operator. The consortium’s proposal eliminates this intermediary, freeing up more money to go directly to the clubs.
A joint venture will be established in collaboration with the clubs to exploit the rights. Seventy percent of all other revenues of the joint venture, such as rights for highlights (currently €30 million per year), international broadcasts, sponsorship, and broadcasts for public viewing, for example in pubs, will go to the clubs after deduction of production costs. In total, more than €200 million will flow to the clubs – more if revenues continue to grow in the coming years, which realistic market forecasts suggest will be the case.
In addition, the clubs will have greater freedom to exploit their own image rights, including through their own online channels, which will allow them to generate additional revenue and strengthen their relationship with their fans.
On Monday, May 8, a meeting will be held between the clubs and ECV to vote on whether to continue the relationship with the current operator. In the letter, the consortium asks the clubs not to commit to anything at this stage. The consortium also requests the opportunity to meet with the ECV and the clubs to further discuss and refine the proposal. “We expect this proposal to be presented on May 8 as a better alternative for the Eredivisie, where the profits are transparent and flow back to the clubs. Because that’s where the money belongs. After all, it’s about your rights!” reads the final paragraph of the letter to the Eredivisie clubs and the ECV.