Monday, 8 June 2009
Is the Premiership Bubble about to Burst?
First it was the banks, then the car companies and now it seems that the media and its "golden egg", the Premiership, may be next to wake up to the hard reality of economic recession. Setanta, it seems, are struggling to meet their financial commitments due to falling advertising revenues and a drop in subscriptions for its live coverage of sport. With free live streaming on the internet and pubs showing the big games, who needs to buy a subscription to Setanta? The business model is crumbling.
Already there is talk of three SPL clubs going to the wall as a result of Setanta's inability to honour its commitments, but how long will it be before the chill hits the Premiership? It isn't just the £35m that Setanta itself owes, it is the removal of competition for Sky, enabling the Murdoch organisation to submit a lower bid next time around or even to renegotiate the current deal. Given how much clubs now depend on Sky money, this could have very serious repercussions indeed.
All bubbles burst eventually, as we West Ham fans know only too well. There might be a few chairmen learning the lyrics of our club song in the very near future!
Posted by Hammersfan at 18:29