The Impact of the New TV Deal on the Premier League

The Impact of the New TV Deal on the Premier League

Going into the new season there is a new TV deal for the Premier League with Sky Sports paying a huge amount of money for the rights.  All this has been well documented and teams have said that it was crucial for them to stay up to get this new TV money.  Now with this TV money, this summer transfer window is showing some of the ways the Premier League is changing because of it.

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The new TV money is helping the top teams, as the spending sprees of Liverpool and both Manchester clubs have shown, but the big teams would have spent anyway.  In the grand scheme of things, it helps the big clubs, but it isn’t a game changer.  For the mid-table teams and the relegation threatened teams though, it provides a new lease of life.

You can see what a big deal the new TV money is in this summer window.  Teams like West Ham, Stoke City, Crystal Palace, and Swansea City are looking to push up from mid-table to the Europa League spots, and teams like Sunderland, Watford, Newcastle, and Aston Villa are all looking to move from a relegation threatened team to a mid-table team.  Three teams have already broken their transfer record this window and it’s not even August.

It’s not just the amount the lower teams have spent, but it’s who they’ve spent it on.  Andre Ayew to Swansea City, Dimitri Payet to West Ham, Georginio Wijnaldum to 15th place Newcastle United, these are big time players choosing these mid-table and bottom half Premier League clubs because of this new money.  With the money coming in, the teams are able to offer players higher wages.  The Premier League already had an advantage over many teams before this new money.  With it, mid-table and bottom half teams are both able to attract bigger players.

One that is really interesting is Yohan Cabaye to Crystal Palace.  Two years ago when Palace came up from the Championship, the Frenchman was being linked to clubs like Arsenal and made a move to French champions Paris Saint-Germain only six months later.  Cabaye’s stock may have fallen a bit in the last 18 months, but a club the stature of Palace signing him is still incredible.  The Eagles went into administration only five years ago.  Now they’re singing players from Champions League teams after only two seasons in the top flight.  That’s what the money in the new Premier League can do for a team.

All of this means that, as competitive as it already is, the Premier League is about to get more competitive.  The injection of cash will allow the mid table teams to get closer to the top teams, and the bottom half teams to get closer to the midtable teams. It should help to close the gap in quality from the bottom half and the top half.  In theory, these new top players coming in should make the league even more competitive and more interesting than it already is.