How English Premier League is closing the value gap with NBA
Topend Sports, an online sport and science information platform, published last year a list of the world’s most popular sports, based on a set of 13 criteria including number of participants, viewers, social media impact, mainstream media exposure, advertising revenue, income of athletes, etc.
Football was the clear winner. There are over 4 billion football fans in the world and 3.6 billion TV viewers of football games. Basketball was ranked the second, with 2.2 billion fans and 1.8 billion viewers.
Take English Premier League for example. The game has attracted 1.35 billion viewers worldwide, compared with National Basketball Association (NBA) 1 billion viewers.
Strangely, however, the commercial value of English Premier League has constantly lagged far behind that of NBA.
Here are some numbers that show the gap. NBA earns up to US$24 billion from telecast rights per year, way more than US$11.7 billion made by English Premier League. Also, the best-paid NBA star Stephen Curry has an annual salary of US$40.2 million, almost double the US$27.13 million earned by Kevin De Bruyne, the best player in the Premier League.
Forbes estimates New York Knicks, the most valuable NBA team, is worth about US$4 billion. A By contrast, New York-listed Manchester United, the most popular soccer team in the Premier League, only has a market cap of US$2.8 billion.
NBA’s great commercial value is probably due to the sheer size of the US economy. In addition, NBA teams typically adopt modern corporate management to maximize the commercial value.
In contrast, many teams in the Premier League still operate in the old way as they cater primarily to local working class fans.
Having said that, more and more soccer teams are now introducing the American-style management approach, and the tide could be turning.
In a recent deal, US private-equity giant Silver Lake agreed to pay US$500 million to acquire 10 percent stake in the owner of Manchester City, implying a total value of US$4.8 billion.
In 2008, an Abu Dhabi-controlled entity purchased Manchester City for US$260 million. It then injected massive capital to improve the team.
Abu Dhabi brought in modern management, expanded the stadium, and opened up the overseas market to boost the team’s commercial value and global reputation.
The team shot to the champion of Premier League for the first time in 2012, and again in 2014, 2018 and 2019.
The latest divestment deal shows how Abu Dhabi has successfully boosted the value of Manchester City.
This article appeared in the Hong Kong Economic Journal on Nov 29
Translation by Julie Zhu
– Contact us at [email protected]
RC
-
On three misconceptions about the LGBTQIA+ community Brian YS Wong
The District Council’s collective decision of endorsing the Pride Parade (as part of the wider Pride Month celebrations of LGBTQIA+ diversity) has drawn substantial ire from many, with conservative
-
Another option for HK SMEs seeking govt support to digitise Kevin Fitzgerald
The Hong Kong Government’s D-Biz Programme has been highly sought after as businesses now understand the importance of taking innovative, digital approaches to keep things up and running during the
-
End of Hong Kong as we know it Michael Chugani
On a stormy morning on July 1 1997 I awoke with a heavy heart mixed with hope. Just hours earlier, at the stroke of midnight, the city where I was born had passed from colonial to communist rule.
-
A big PR deal Hong Kong doesn’t need Ben Kwok
Finally, Chief Executive Carrie Lam Cheng Yuet-ngor was able to secure the services of a public relations firm to help rebuild the city’s shattered international image. You will recall that her
-
Beijing’s best shot - we are as vile as you Stephen Vines
If your best argument is not that what you are doing is right but that what others do is even worse, it is safe to conclude that you have a problem. Yet here we are as Beijing furiously mobilises all
End of Hong Kong as we know it
Why Indonesia is the next digital payments battleground
Coronavirus turns Boris Johnson’s honeymoon into nightmare
The recovery plan America needs
On three misconceptions about the LGBTQIA+ community
SHOPLINE: “We are hiring, a lot.”
Another option for HK SMEs seeking govt support to digitise
