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Is this the start of the financial meltdown for the Premier League?


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The Premier League has terminated its £564m contract with its Chinese licensee with immediate effect.

China was the English top flight's most lucrative overseas television rights territory, with a three-season deal agreed in 2019.

It is understood the reasons for the termination are financial rather than political.

BBC Sport has been told streaming service PPTV withheld its latest payment of £160m, due in March.

In a statement on Thursday, the Premier League 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."

PPTV is owned by Suning Holdings, the Chinese group which also has a controlling stake in Serie A side Inter Milan.

TAKEN FROM: https://www.bbc.co.uk/sport/football/54014827

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Will be interesting to see if they negotiate a new deal because I think it would be at a reduced yearly rate. That will be the best indicator yet to see what extent the money is likely to dry up in the short term at least.

As for the larger trend of businesses not wanting to upset the Chinese for fear that they will pull out of deals, its worth keeping an eye on as their power and influence increases.

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1 hour ago, Baba Yaga said:

As for the larger trend of businesses not wanting to upset the Chinese for fear that they will pull out of deals, its worth keeping an eye on as their power and influence increases.

Would screw the league up massively if Chinese investors suddenly started looking for a way out

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2 hours ago, phantom said:

Would screw the league up massively if Chinese investors suddenly started looking for a way out

I think the Chinese deal 160m/yr is about 10 times less than the sky/bt/Amazon deal which is around 1.6bn/yr, counting other international tv deals I think the premier league aren't that reliant on China although it will obviously hurt (they are a big customer/market no doubt). 

If they renegotiate a deal with a different Chinese broadcaster but instead of 160m/yr it's let's say 100 instead, that's more worrying for the prem because it brings into doubt the value of future tv deals which is a large part of what the club's values are based on.

I don't think a product with fake crowd noise and no fans can attract as much money as before (and people's declining incomes), will be very interesting to see how bad a hit they will take.

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20 minutes ago, Baba Yaga said:

I think the Chinese deal 160m/yr is about 10 times less than the sky/bt/Amazon deal which is around 1.6bn/yr, counting other international tv deals I think the premier league aren't that reliant on China although it will obviously hurt (they are a big customer/market no doubt). 

If they renegotiate a deal with a different Chinese broadcaster but instead of 160m/yr it's let's say 100 instead, that's more worrying for the prem because it brings into doubt the value of future tv deals which is a large part of what the club's values are based on.

I don't think a product with fake crowd noise and no fans can attract as much money as before (and people's declining incomes), will be very interesting to see how bad a hit they will take.

I was thinking more of the knock on affects if it upset Chinese financial companies, but completely agree with your point

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25 minutes ago, phantom said:

I was thinking more of the knock on affects if it upset Chinese financial companies, but completely agree with your point

Oh I see, that's a complete mystery to me but it would be interesting to know if Fosun International or whoever could do much about it. I'm not sure Chinese culture would allow for someone to express their feelings strongly on a matter that goes against national interests (I read like 2/3 of a book in China so possible bullshit) they might be the next Chinese billionaire to get done for corruption charges, I guess it pays to have diverse businesses and possibly they will move into other countries like Italy who have played some serious games over in China.

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