MANU EXEC BELIEVES U.S. TECH COMPANIES SET TO BID ON PREMIER LEAGUE BROADCAST RIGHTS
Sky Sports (SKYAY) paid $6.9 billion for the television broadcasts rights to the English Premier Football League, but their existing 3-year contract expires at the end of the 2018-2019 season. With a steady decline in television viewership, there is no guarantee Murdoch’s company will submit a bid meeting or exceeding the terms of their current deal. Manchester United (MANU) Vice Chairman Ed Woodard remains unconcerned; believing the next deal will fetch 30-40% more, with content hungry tech companies like Facebook, Amazon and Netflix waiting to “enter the mix”.
Howie Long-Short: MANU reported financial results for the full year ending June 30th, with revenues up 12.8% YOY (to ($789.2 million). Growth is being attributed to the Sky Sports contract, which helped to increase broadcasting revenues 38.2% YOY (to $263.6 million) as well as increased revenues from commercials, sponsorships, retail and licensing. The only negative for the company was losing 15% over the course of the year on digital output. As for Woodard’s optimism, I wouldn’t be so confident. Total media rights? Perhaps. For a television deal, I still think his best bet is Murdoch looking to protect his trophy asset.
Fan Marino: Forbes released a list of the world’s most valuable soccer teams, and MANU came out on top with a valuation of $3.69 billion. Barcelona, Real Madrid, Bayern Munich and Manchester City rounded out the Top 5. On the field, the Red Devils won the 2016-2017 Europa League Title. The championship qualifies them for the 2017-2018 Champions League, the most prestigious (and lucrative) competition in European football.