The Premier League has achieved a significant financial boost by securing a 25% increase in the value of its broadcast rights for South America and the Caribbean. This uplift comes through a new agreement with the American network ESPN, which will extend their long-standing partnership until 2031.
Details of the ESPN Agreement
The new deal is understood to be worth approximately £450 million, a substantial rise that underscores the growing international appeal of English football. ESPN has committed to paying 25% more to broadcast high-profile matches, such as Manchester United versus Tottenham, to audiences across South America and the Caribbean.
Clubs were informed of this development during the Premier League shareholders' meeting last Friday. The league also provided updates on other regional TV contracts that are set to go out to tender in the near future.
Contrast with Domestic Market Trends
This 25% increase in one of the Premier League's largest foreign markets highlights a stark contrast with the stagnant domestic broadcasting landscape. While the league managed a slight rise in its UK deals with Sky Sports and TNT Sports—from £1.63 billion to £1.67 billion per season in the new four-year contract that began last August—this growth was primarily due to an increase in the number of televised games from 215 to 270.
In reality, the per-game value of domestic rights fell by about 10%. This decline has prompted the Premier League to initiate discussions with the English Football League about potentially lifting the traditional 3pm Saturday blackout from the 2029 domestic broadcast cycle onwards. Such a move would allow the league to sell all 380 matches each season, potentially boosting domestic revenue.
Overseas Demand Remains Strong
Every Premier League match is already available live in overseas markets, and the new ESPN deal signals that international demand continues to be robust. The league's overseas TV contracts are already more lucrative than its domestic agreements, generating £2.1 billion annually compared to the £1.67 billion from UK deals.
This income gap is expected to widen in the coming years, as the Premier League sets its sights on securing a significant increase in the value of its US rights deal. That contract will go to market after this summer's World Cup, with NBC Sports currently paying £378 million per year under an exclusive six-year deal that expires in 2028. Competition from other networks is anticipated to be fierce.
Strategic Implications and Future Prospects
The Premier League's ability to command higher fees in international markets like South America demonstrates its global brand strength and the insatiable appetite for top-tier football content abroad. This trend is likely to influence future negotiations and broadcasting strategies, as the league seeks to maximize revenue from both domestic and international sources.
The Premier League has declined to comment on the specifics of the ESPN deal, but the financial implications are clear. With overseas rights already surpassing domestic earnings, the league's economic model is increasingly reliant on its international fanbase, setting the stage for continued growth in global broadcasting partnerships.
