In the last 15 years, the sale of the broadcasting rights in major football leagues has become a fundamental issue. In the case of football clubs, the proportion of TV rights revenues with respect to the total revenues has increased dramatically in this period: in the case of the major national European football leagues, it has increased from an average 22% in 1996 to 45% in 2010. With counted exceptions, football games are not freely broadcasted anymore and this has generated a considerable amount transfer of revenues from TV consumers to football clubs. Football Pay Per View rights are a strategic device for TV broadcasters in order to use football as an instrument to gain share in other TV markets. Powered by globalization and media, European football has become a global business. As an example, the Premier League, national football competition in England, sold in 2010 its broadcasting rights for a total revenue of 1.27 billion euros, while the LIGA de Futbol Professional the national Spanish league, obtained 612 million euros. It is therefore an important topic that needs an economic understanding.
Media rights are evolving on a global scale, complemented by technological advancements that are breaking the codes between traditional and digital media. We advise rights holders according to the sports media market
We make sure that every sport event can reach fans around the world. In addition to creating, producing or distributing content, we are developing strategies adapted to the beneficiaries of the biggest sporting events. Thus, we support leagues and federations to develop, manage and negotiate their media rights.
McSport is able to respond to the challenges presented by modern sports media. We are present worldwide with media teams: in Africa, Europe, Asia and America. In addition to creating, producing or distributing content, we are developing suitable strategies to support our customers by taking into account advances in broadcast and the digital world. Alongside us, clients generate added value in their assets while protecting their rights and royalties.
TV stations buy the broadcasting rights to football teams and sell the signal to different channels in the TV market. In this sense, note that there are two differ- ent TV markets, the market for broadcasters and the market for TV channels. Let us assume that there is a continuum of channels that sell a homogeneous good and compete a la Bertrand. Therefore in equilibrium the final price is equal to the price that the broadcasters charge to the channels (the wholesale price will be equal to the final price). The presence of the TV channels is irrelevant in this model, given that they act as efficient intermediaries between TV broadcasters and consumers. Hence, the TV broadcasters will decide what price to charge to the consumers when they sell the football games on TV.
The marketing of media rights is a key profession of McSport. We join major events, leagues and federations to negotiate their rights and develop their marketing catalogs.