Could the Big-6 breakaway from the Premier League?

Professor Chadwick said: “The 'Big-6' (Chelsea, Arsenal, Tottenham, Man Utd, Man City and Liverpool) will call for changes to the allocation of television revenues. In particular, clubs including Manchester United, Chelsea and Arsenal are believed to want a greater share of money generated by selling reversion rights in overseas markets. The timing of this move is telling, for several reasons. The tendering process for the next round of Premier League (PL) TV rights deals will have begun, and the top clubs appear to be posturing and positioning ahead of this. 

“This is a reflection of their growing strength, both on and off the field as well as overseas. The clubs will also be mindful of the changing nature of media consumption, allied to shifts in the broadcasting industry's dynamic. With the likes of Netflix and Amazon rumoured to be interested in bidding for the rights to broadcast games, with consumers shifting from traditional viewing formats to online bursts of consumption, and with clubs keen to ensure they enforce control over the assets they control, the upcoming round of TV rights negotiations is taking place against what it arguably the most uncertain backdrop since the PL's inception 25 years ago.

“All concerned though will need to be careful not to kill the goose that laid the golden egg. While big clubs will inevitably claim that they should be given a bigger chunk of TV revenues, the global spectacle the PL has become is the direct result of a competition format and revenue allocation model that has fostered reasonably strong competitive balance. The PL is more progressive in the way it allocates revenues to clubs - for instance, the gap between money awarded to the top and bottom teams last season was only £40million. This is in stark contrast to, for example, Spain where TV money allocations have effectively created a duopoly. In simple terms, the big-6 need the other clubs in order to create the matches that sell so well overseas.

“That said, the likes of Manchester United appear to have outgrown the PL and its existing structures. The globalisation of football and strengthening of markets in, for example, China means that clubs' target markets now often lay away beyond domestic borders. Furthermore, with tensions evident in European football (especially around UEFA control and Financial Fair Play), there are pressures on clubs to adopt a more proactive, strategic approach to managing their businesses. Indeed, there remain calls among some for there to be a European breakaway league. At the same time, the likes of Italy's Serie A and Spain's La Liga are even thought to be considering staging games overseas in order to build their businesses. PL clubs are well aware of these things, hence their pressure on the league are a reflection of their desire to maintain competitive positioning in what is an increasingly dynamic, challenging market for football.”