To Explore Whether the Financial Impacts of the Football-Media-Sponsorship 'Alliance' in England...

Final Year Project

TAL000-3

Project submitted in partial fulfilment of the degree BA (Hons) in Event Management

By

David Risebrow

1103710

April 2014

TAL000-3 Final Year Project 1103710

Contents

Figures 2

Tables 3

Graphs 4

Abstract: Football Alliance 4

Introduction: The Little Guys 6

1.1 Aim and Objectives of Study...................................................................................................7

S.M.A.R.T 8

1.2 The Focus of the Research Study.........................................................................................9

1.3 Research on Sport-Media-Sponsorship Alliance in Tourism / Events...............................9

1.4 Key Theories and Concepts..................................................................................................10

1.5 Justification for Research......................................................................................................11

1.6 Originality / Contribution to Knowledge / Impact Statement.............................................12

1.7 Limitations of Study................................................................................................................12

1.8 Organisation of Dissertation..................................................................................................13

Literature Review: The W’s 15

2.1 Unruly trinity or match made in Heaven..............................................................................16

2.2 Under the football, media and sponsorship umbrellas......................................................17

2.3 Technology weighs in............................................................................................................22

2.4 Premier League hand-me-downs.........................................................................................23

2.5 Greed or meagre income......................................................................................................24

2.6 The Referee............................................................................................................................25

2.7 Research Questions..............................................................................................................28

Background Secondary Data 30

3.1 Alliance Timeline....................................................................................................................30

3.2 Murdoch’s Stronghold............................................................................................................33

3.3 BSkyB V BT............................................................................................................................36

3.4 A Widening Gulf......................................................................................................................37

3.5 Parachute Payments..............................................................................................................39

3.6 FA Steps In..............................................................................................................................40

Research Design 45

4.1 Research Approaches...........................................................................................................45

4.2 Research Techniques............................................................................................................46

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4.3 Sampling Issues.....................................................................................................................47

4.4 Data Collection Methods.......................................................................................................47

4.5 Designing Collection Methods..............................................................................................48

4.6 Data Analysis..........................................................................................................................48

4.7 Ethical Considerations...........................................................................................................49

4.8 Matters of Validity and Reliability.........................................................................................49

Conduct of Study 52

5.1 The Location of Research and Research Informants........................................................52

5.2 Collection of Data...................................................................................................................52

5.3 Analysing Data Collected......................................................................................................53

5.4 Research Ethics.....................................................................................................................53

5.5 Changes after Interim Stage.................................................................................................54

5.6 Researcher Reflexivity...........................................................................................................54

5.7 Other Issues............................................................................................................................55

Findings and Discussion 57

6.1 Objective One.........................................................................................................................57

6.2 Objective Two.........................................................................................................................61

6.3 Objective Three......................................................................................................................65

Conclusion 69

7.1 Summary of Research Findings...........................................................................................69

7.2 Relationship to Background Literature................................................................................69

7.3 Contribution to Knowledge....................................................................................................70

7.4 Research Aim and Objectives Re-visited............................................................................70

7.5 Implications of Study..............................................................................................................71

7.6 Directions for Future Research and Recommendations...................................................71

References 73

Appendix 80

9.1 Appendix 1: Several pages of Ofcom report detailing the discrepancies between PL and FL clubs (Ofcom, 2007)........................................................................................................80

9.2 Appendix 2: Gary Lineker contact page..............................................................................82

9.3 Appendix 3 – Ethical Approval..............................................................................................83

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Figures

Figure 1 – Football Sponsors Page 21

Figure 2 – FA Hierarchy of Coverage Page 26

Figure 3 – ITV Digital Revenue Page 32

Figure 4 – ITV Digital Collapse Page 32

Figure 5 – Broadcast Payments for Premier League Page 34

Figure 6 – How the Premier League Makes Its Money Page 35

Figure 7 – TV Broadcasting Rights Page 35

Figure 8 – Shirt Sponsors Page 38

Figure 9 – Insolvent Football League Teams Page 42

Figure 10 – Qualitative/Quantitative Research Page 45

Figure 11 – Valid and Reliable Data Page 49

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Tables

Table 1 – SMART Objectives Page 4

Table 2 – Research Layout Page 14

Table 3 – Football-Media-Sponsor Alliance Stakeholders Page 18

Table 4 – Rowe and Morrow Comparison Page 27

Table 5 – Research Questions Page 28

Table 6 – Alliance Timeline Page 30

Table 7 – Average income of FL divisions from broadcasters Page 38

Table 8 – Research questions answered Page 42

Table 9 – Ethical Research Page 53

Graphs

Graph 1 – Broadcasting companies is academic sources Page 58

Graph 2 – Broadcasting companies is secondary sources Page 59

Graph 3 – Secondary data on BT v BskyB Page 60

Graph 4 – ITV Digital collapses causes discrepancies Page 61

Graph 5 – Debts after ITV Digital collapse Page 62

Graph 6 – Expected losses after ITV Digital collapse Page 63

Graph 7 – Academic sources for and against the alliance Page 63

Graph 8 – % Academic sources for/against FA action against alliance Page 65

Graph 9 – Sources for/against parachute payments Page 66

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Abstract: Football AllianceAn alliance can be defined as a ‘union formed by mutual benefits’ (Stahl, Menderhall,

& Oddou, 2012). In terms of the alliance which this report focuses on; the mutual

benefactors are football, media and sponsors. Football provides the media with

worldwide entertainment and therefore an opportunity to create income through

advertising and subscription revenue is available. This global coverage gives

sponsors a platform to raise brand awareness by indirect marketing. Football

benefits from this via sponsors and media paying vast amounts to gain broadcasting

and naming rights.

This research uses three objectives which identify the key stakeholders in the

alliance, the impacts of the alliance and how the Football Association has attempted

to control the alliance. These combine to help answer the aim of whether the

financial impacts of the alliance are only felt by Premier League clubs or if Football

League clubs gain some benefits.

The research, making use of academic research and secondary data, uncovers that

main media companies within the alliance include BskyB and BT Sport with ITV

Digital playing a previous major impact. It also becomes clear that the alliance plays

a major part in the financial discrepancies between the two as well as indicating that

the Football Association could have aided Football League clubs more successfully.

Key Words: Football, Alliance, Media, Financial Impacts in Football

AcknowledgmentsWith thanks to:

Denise Cardwell – Dissertation tutor

Victor Le Grand – Support and academic guidance

University of Bedfordshire for use of facilities, sources and academic support

Rossbro Limited for binding and printing this document

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CHAPTER ONE

INTRODUCTION: The Little Guys

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To explore whether the financial impacts of the Football-Media-Sponsorship

‘Alliance’ in England only benefit Premier League clubs

Introduction: The Little Guys

Football is a results business. However these results are not confined to the pitch.

Profit margins and clubs finances are taking priority over the sport’s aesthetics.

Football’s rich history for entertainment and ethical values for sportsmanship is

infamous. An alliance of football, media and business has taken shape and started to

weigh in on control of football.

Money being pumped into the sport has led to some major improvements to the

sport (e.g. facilities) and given the world coverage of some of best entertainment

around, but that does not mean the ‘little guys’ of the football league get to benefit

from this.

In England football influences many areas of day-to-day life. Newspapers have

football headlines on all the back pages, but how many pages do you have to turn to

read any news on the Football League’s 72 clubs and their players? The Premier

League and its 20 clubs clearly gain more attention and in turn a lot of revenue, does

this mean that Football League clubs aren’t getting their fair share of the benefits?

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1.1 Aim and Objectives of StudyAim: To explore whether the financial impacts of the Football-Media-Sponsorship

‘Alliance’ in England only benefit Premier League clubs.

Objectives:

1. To establish who the main media companies in the football alliance are.

2. To explore whether the financial discrepancies between Premier League and

Football League clubs has been caused by the Football Alliance.

3. To analyse whether the FA are doing enough to help Football League clubs

gain the benefits of the Football Alliance.

These objectives clearly define this project making use of the ‘SMART’ principles.

S.M.A.R.TThis report has ensured it follows the ‘SMART’ principles;

Table 1 – SMART Objectives

Specific The report ensured the aim and objective were not too

broad. It gives a definite aim with three objectives that when

answered will conclude the aim. Research has been specific

using academic sources and secondary data applicable to

the overall topic without procrastinating into irrelevant

tangents.

Measurable The aim and objective ensured the research was

measurable. Through academic sources and secondary data

enough information was gathered to conclude the aim.

Achievable Similarly the aim was achievable due to the volume and

specific nature of the sources. The aim was specific enough

to focus the research and with similar academic research

available the aim could be answered.

Realistic By using secondary data rather than primary research the

aim became realistic. When primary research was

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attempted, sources could not be reached making the use of

primary research unrealistic (see sections below). The report

identified this early ensuring the aim was answered using a

realistic method.

Time-bound This report has made use of nearly two academic years. The

idea for the research began with project proposals a year

ago. This has allowed ample time to collect data and shape

research ensuring the project was viable and the aim

answered.

1.2 The Focus of the Research StudyThis study will focus on the varying levels of impact each part of the alliance has

on both Premier League (PL) and Football League (FL) clubs. The Football

Section will focus on the involvement from the governing body (FA). The Media

Section will focus on who the major companies involved are, what impact they

have and how they are in competition with each other for supremacy. Finally the

Sponsors Section will focus on how and why they favour supporting PL clubs and

their strong partnership with media. This completes the ‘Golden Triangle’ of the

football alliance.

Other sporting literature will ‘set the scene’ and investigate the alliance with

secondary data used to show the specifics of the discrepancies between PL and

FL clubs e.g. Ofcom report, FA finance reports etc.

1.3 Research on Sport-Media-Sponsorship Alliance in Tourism / EventsThis study is justified due to the lack of previous research based in this precise

research topic. Football is rarely looked into separately from sport in general.

Football becomes a very popular reference amongst authors to write about to

back their theories on sport, showing there is suitable academic references for

this project to use without repetition of other research. Much of this academic

finding is done using and citing secondary data, this will justify the choice for this

research to also use secondary data without primary research.

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Rowe described the alliance as an ‘unruly trinity’ in the book Sport, Culture and

the Media (Rowe, 2004). This opinion is not shared by all researchers. Others

have stated ‘Sport and television have been good for each other’ and described

them ‘as a match made in heaven’ (Hutchins & Mikosza, 2010) and Billings

compounded previous research in his chapter ‘why sport fits television so well’

(Real, 2011).

The secondary data will consist of many forms. Newspaper articles will feature

heavily with detailed reports from the FA and Ofcom to show finances and media

coverage. Overall from this there is clear academic research on similar areas of

research which will be used as reference to this report

1.4 Key Theories and ConceptsThis research will cover a few definite areas. The key theory and concept is

mirrored in the aim, comparing the effects of the alliance. To achieve this, other

concepts and theories need to be explored.

The aims of the topic give specific theories and concepts to explore. The first

objective is to determine who the main media companies are and therefore the

concept of media is engaged. Media companies are in competition for coverage

of football such as televised games. Currently one competition stands out over

others: BSkyB v BT Sport. BT Sport is a fairly new media company and has

begun to make a concerted/determined effort to compete with BskyB, regarded

for some time as the dominant provider of football coverage. These newspaper

abstracts ‘BT complains to Ofcom about Sky Sports TV supply’ (BBC , 2013) and

‘another round in the battle found BT Sport making the controversial decision of

hiring on Andy Gray the former Sky Sports analyst, widely credited with

reinventing football punditry in Britain, part of a wider strategy to build a

relationship with Middle East networks’ (Rumsby, 2014) show the fierce battle

between the two.

Another impact media coverage has is the use of improved technology such as

HD and 3D viewing. Recognising this aspect allows this project to explore

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technology’s impact and place within the alliance, particularly since the FA

regulate the media involvement. This shows all objective links with technology

and therefore this type of technology (better and more expansive coverage) is

needed as key concept to explore, which is also linked due to the sponsorship of

the technology used. These key theories have been explored by reliable authors

such as (Rowe, 2004).

1.5 Justification for ResearchIn sport there is said to be a ‘Golden Triangle’ consisting of sport, media and

sponsors, this alliance has direct impacts on each other. In recent years the

involvement of stakeholders within the football alliance has visibly increased. This

report will compare whether the impacts caused by this only affect The

Premiership’s 20 clubs or if all 72 Football League clubs (tiers 2-4) get benefits

with the use of previous academic research and secondary data.

‘Sports mega-events such as football have grown over the years and have thereby changed into commercial events, dominated by the power of

satellite television’ (Hacleitner & Manzenreiter, 2010)

This quote shows that media companies such as BskyB who own a satellite

television company have impacted on the game. The same article then goes to

state

‘The media are crucial actors of the sports-media-business alliance and play a leading role in the construction of the bonanza image’.

This bleak and blunt description shows very little support for the media when

describing an alliance. Rowe (2004) acknowledges this alliance in his book where

he refers to Football-Media-Sponsorship as an “unruly trinity”. Other authors have

a very different outlook to this showing many benefits are not always felt by the

clubs outside the mega-events.

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The precise nature of the topic requires justification. Previous work has been

done but not to the extent this research will deliver. Prior research showed that

secondary data was used in the majority of research.

Secondary data is a justified method to use in this project. Primary research

would have been hard to gain in the area being researched such as; football

players and clubs not willing to talk or hard to access. Although their opinions

would be valued it would not be in conjunction with the aim and objectives of the

research. Secondary data will find exact results that will be used to state the

differences such as finance reports showing the FA’s financial backing of Premier

League and Football League clubs and therefore answer the aim and objectives

directly.

With the usage of secondary data quantitative data will need to be analysed by

using secondary data analysis as this will ‘lend new strength to the body of

fundamental knowledge’ (Long-Sutehall, Sque, & Addington-Hall, 2010) through

clear analysis combining records and statistics to give one overall answer to the

topic.

Finally the research will be justified as this report will give academic data and

factual secondary data showing negative aspects of the alliance. This could be

used to stop any possible impacts (positive or negative) of the alliance spreading

into other sports as the media is trying to gain control of sports to create a

platform for more income as shown with BskyB buying broadcasting rights for the

Irish GAA (Gaelic Football) (Irish Independant Newspaper, 2014).

1.6 Originality / Contribution to Knowledge / Impact StatementThis work is individual and contains no materials previously published or written

by another author, except where acknowledgements are made. The intellectual

make-up of this dissertation is original and not a representation of any work done

before. All research used in this report will be correctly referenced secondary

data or academic literature. No information used in this report will be fabricated

and all references will be included where applicable.

Usage of secondary data will lead to referencing quantitative data to give correct

numerical data to show the direct impacts. However qualitative secondary data

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could also enhance the overview of the report and reference to the quotes will be

made ethically.

1.7 Limitations of StudyThe research will be limited due to the methods being used. The lack of primary

data limits the use of qualitative data and removes the emotion behind answers

that could have been gained. This research may not be able to acquire primary

data from the sporting bodies involved and if it did manage this the answers

could be biased.

Using secondary data also gives part responsibility away from the researcher as

access to the data is vital and not always permitted. ‘Records may not be well

kept or accurate, the researcher may not have access to records and certain

records may be left to change results’ (Matthews & Ross, 2010)

Also, this research is limited by the lack of time and budget to create an in-depth

as other researches will have a better capacity to perform more in-depth and

critical research within the topic.

Finally an element of risk is introduced when using secondary data as secondary

data has been collected by other people for their purposes, whatever they may

be and not collected for the same specific purpose. This will need to be carefully

monitored to ensure only relevant data is used.

1.8 Organisation of DissertationThis research follows a logical path to present findings and data it will benefit

from following the following chapter structure:

The report will have a clear and well designed title page. This will give the

readers a clear indication to what is being done.

This will be followed by a small abstract from the research which

summarises the report giving detail to what the research intends to find out

and what methods are used.

A list of contents, tables and figures will then be shown for ease of use for

the reader

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This will set the professional design for the research and is followed by the main

body

Table 2 – Layout of Research

Chapter 1:

Introduction

As already shown the introduction is there to ‘set the scene’, split into various

sections as already shown. It details the main aim and objectives, how the

research will be conducted as well as kept secure. Other areas include the

limitations and justification for the research

Chapter 2:

Literature

Review

Consists of many and various academic articles, books and journals. These will be

referenced to compare previous research and opinions on the topic. The literature

review will compare the methods and findings of other author’s research and will

help set the research design for this project. This will create the research topic

argument/questions. It will consider the key concepts and critical points of other

research allowing this project to take shape

Chapter 3:

Background

Explores more previous research and more specifically the secondary data which

will back up theories of the literature review. It will also investigate the objectives by

using secondary data relevant to the academic sources found in the previous

chapter.

Chapter 4:

Research

Design

Establishes the research questions which are to be found in the research. It will

justify the methods used to find the research collection and analysis as well as the

approach taken

Chapter 5:

Conduct of

Study

Details the limitations and ethics undertaken in the research. It will show how the

research will be done justly and how the research was done using which methods

for research and analysis.

Chapter 6:

Findings

and

Discussion

Shows the feedback and analysis of the data collected. It will give an answer to the

research topic and should answer the objectives. The discussion will show both

sides of the argument created in the previous chapters and will lead to the

conclusion.

Chapter 7:

Conclusion

Summarises the research. It will recap the report and detail the findings and why

that has led to the final statement. The conclusion is a final point and rounds the

report of meaning it is concise, it will also lead to suggest implications and the

importance of the research. Also this report will end with suggestions for further

reading.

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CHAPTER TWO

LITERATURE REVIEW: The W’sWho, What, Why, When & Where

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Literature Review: The W’s

This research has looked at many academic sources to provide a reliable argument

to the topic. This academic research has been taken from journals, books and

reports published by scholars and will be referenced to back any arguments made in

this report. These arguments will be backed up and further investigated in the next

chapter via secondary research undertaken.

This literature review will have many sources however there are two main source

used throughout for their concepts. These concepts have formed the research

questions and developed an argument for the research itself. Sport, Culture and the

Media (Rowe, 2004) has already been discussed previously and explains an opinion

of an ‘unruly trinity’ which will show the argument explaining the trinity and who are

involved. Another book which covers all of the objectives especially discussing the

financial discrepancies and the FA involvement is ‘The People’s Game’ (Morrow,

2003). These two sources will be referenced regularly and argued with or against

each other throughout the chapter by other academic sources.

This chapter will use many varying sources to help answer the aim and objectives of

this research. To ensure this is done this chapter will be sub-headed to show the;

Who, What, Why, When, Where and How of the alliance.

2.1 Unruly trinity or match made in Heaven- What is the alliance?

As previously quoted ‘the media are crucial actors of the sports-media-business

alliance and play a leading role in the construction of the bonanza image’

(Hacleitner & Manzenreiter, 2010). For starters this shows that an alliance is

visible to see with media being a key influence within it. This ‘bonanza image’

however offers differing opinions. The ‘unruly trinity’ described by Rowe

contradicts other authors, however one thing that is apparent to all is the

presence of a sport-media-sponsorship alliance.

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“A Sporting Triangle: Television, Sport and Sponsorship” is a complete chapter in

a Boyle & Haynes book which details that ‘There is a complex triangular

relationship that has evolved between sport, sponsors and media (television in

particular) and this relationship is not a new one’ (Boyle & Haynes, 2009). Boyle

and Haynes identify the alliance has been formed a long time ago. This alliance

was caused by the forcefulness of the media with ‘television the emerging driving

force of this trinity’ (Sandvoss, 2003).

The alliance is a working partnership between the three, ‘they all require each

other’ (Horne, 2006). Football gives a platform for the media to create business

as well as sponsors being made visible which in turn requires sponsorship and

advertising for money to fund the sport as ‘the longest relationship football cubs

have are with the media’ (Morrow, 2003).

Sponsorships take many forms from sponsoring team, players and stadiums,

sponsoring games and other indirect platform of football to the obvious TV

advertisement. ‘Sponsorship is one of the world’s most important forms of

marketing’ (Chadwick, 2009). Football relies on sponsors for income and ‘in 2008

was valued at £5 billion’ (Boyle & Haynes, 2009) with the majority of this

sponsorship visible during games. With income so vast football can develop and

has been allowed to ‘expand in the way it has, however this has led to

commercialisation of the game’ (Billings, 2011). Football has become a business

which cannot survive without sponsors pumping money into the game.

Nonetheless this is likely to continue as media are given a bigger platform to

provide sponsorship opportunities with ‘improving technology and greater

coverage across the world’ (Boyle & Haynes, 2004). This new income leads to

better results leading to greater income creating a multiplier effect.

The alliance of football-media-sponsors is a working partnership and although it

may have led to the game changing and becoming commercial, from a business

perspective it is a ‘match made in heaven’ (Hutchins & Mikosza, 2010)

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2.2 Under the football, media and sponsorship umbrellas- Who is actually in the alliance?

It has been explained that football, media and sponsors make up the alliance.

This report will go deeper into the actual stakeholders responsible and affected

by the alliance.

Table 3 –Football-Media-Sponsor alliance stakeholders

FOOTBALL

Football is the major sport in the UK and ‘accounts for the

largest share of the UK sports rights market – the top five

properties are all football’ (Ofcom, 2007). Using the term

‘football’ does not define those who are involved. There are

many layers of stakeholder involved under football. The sport is

governed internationally by FIFA (Fédération Internationale de

Football Association) and nationally by the FA (Football

Association). Within the FA there are various leagues and

regional governing bodies. ‘English football contains over 24

levels in a pyramid league system containing more than 140

leagues, 480 divisions and nearly 7,000 clubs‘ (Greenfield &

Osborn, 2011). This shows the number of people affected by the

alliance. This report is focussing on the difference between

Premier League and Football League clubs which consists of a

combined 4 divisions and 92 clubs.

Although the FA oversees all of these clubs there are separate

governing bodies. The Premier League contains 20 clubs and is

‘the most powerful and influential football authority in the world ‘

(Szymanski, 2010) this compares to the Football league which is

the body containing three division; The Championship, League

One and League Two containing 72 clubs.

This indicates the PL maybe prioritised by the FA much ahead

of the FL with each club having a close connection to its

governing body. The FA has come under much criticism in the

past for commercialising the game and leading the way in

encouraging the football-media-sponsorship alliance ‘the

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governing body of sport which was built and supported entirely

by amateurs are captured for commercial purposes’ (Boyle &

Haynes, 2009). This view is similar to Morrow who states ‘the

FA shows is feebleness to regulate football’s economy resulting

in many clubs changing their structure’ (Morrow, 2003).

Contradictory to this some argue that the FA are trying to keep

its morals and have been shown to widely discourage the

‘comericalsiation of historical competitions such as the FA Cup,

which is not about maximising revenue’ (Rowe, 2004). However

since this the FA have allowed the ‘FA cup to be sponsored’

(Boyle & Haynes, 2009).

This shows therefore that the FA is the key stakeholder in the

football section of the alliance with the PL and FL in competition

for the spoils.

MEDIA

Media companies both at the front of the competition and those

who have been pushed aside have all impacted the alliance.

There are obvious companies at the forefront of football

coverage in the UK. The clear current major companies include;

BBC, ITV, BskyB and BT Sport.

Morrow states that companies such as BskyB have forced clubs

to ‘sell their sole to TV’ (Morrow, 2003). Rowe agrees that

‘BskyB have dominated in previous years with its coverage of

live football in the UK’ (Rowe, 2004) and even ‘attempted to buy

Manchester United, the richest club at the time’ (Dobson &

Goddard, 2004). However, BskyB have started to face

competition from ‘most noticeably BBC and BT’ (Boyle &

Haynes, 2004).

This will not be the first time BskyB have faced competition and

have overpowered and removed all previous competition for

media control over football in the UK. ‘ONdigital attempted to

take on BskyB but barely got off the ground before Murdoch

(BskyB CEO) crushed the competition’ (Hutchins & Rowe,

2013). ‘Setanta, ESPN and ITV Digital have also famously tried

to take on BskyB but to no avail’ (Jarvie & Thornton, 2012).

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BskyB had rapid growth in the 90s (Chadwick, 2009) which has

given them a historic right to be at the forefront of football media.

There will ‘always be competition for media control as sport fits

TV so well’ (Billings, 2011). ‘BskyB makes use of 5 channels;

Sky Sport 1, 2, 3 and 4 as well as Sky Sports News’ (Boyle &

Haynes, 2004). This allows the company to cover a wide range

of sport and matches simultaneously. ‘ITV Digital attempted a

similar fate but with the economic downturn could not handle the

costs’ (Dobson & Goddard, 2004).

BskyB may be facing their power over football reducing

dramatically in the near future which will be explored further in

the next chapter, but it is very apparent that BskyB are key

stakeholders involved in the football-media-sponsorship

alliance.

SPONSORS

Sponsors cover all aspects of football open to them. Stadiums

are rebranded and sponsored by the highest bidder, kits are

covered in company logos and even players juggle their football

commitments to extra earning of the pitch with sponsors. Major

players such as David Beckham are famous for their brand

almost more so than their talents ‘Beckham had a string of

sponsors worth more than £8 million with Marks and Spencer,

Pepsi, adidas and Brylcream’ (Boyle & Haynes, 2004). This

shows how sponsors have entered the aliance jumping on

marketing opportunites provided by the increased coverage of

players, teams and locations. It has led to ‘sport and players

being associated with brands as much as the sport itself’

(Kennedy & Hills, 2009). This then leads to controversy within

the sport as unofficial sponsors try to weigh in and with blurred

lines over ‘sponsorship regulators struggle to keep control’

(Rowe, 2004).

The number of sponsors is too many to detail, however with this

report focussing on the PL and FL clubs it will uncover the

perpetrators of commercialisation in these leagues. ‘Coca-Cola

signed a deal with the football league to sponsors its leagues

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leading to the renaming of its league e.g. Coca-Cola League

One’ (Nicholson, 2007). Sponsors of leagues in the past can be

stakeholders within the alliance. Since then, the FL have given

in to naming rights of sponsors to Sky Bet, again showing how

influential Sky is within this alliance not only as a major media

company but also as a sponsor.

This has led to controversy with Rowe stating ‘unofficial

sponsors seek to get their association logo as close to the sport

as possible’ (Rowe, 2004). This view is shared by Morrow but

for different reasons. Morrow feels the FA have allowed

sponsors in and have failed to control them but Rowe feels the

sponsors have forced their way in uncontrollably.

Morrow also denotes clubs have been known to have ’11 or

more official sponsors’ (Morrow, 2003). Again, this shows the

numerous sponsors involved in the alliance and the varying

interest FL clubs attract contrasting highly from PL clubs.

Currently the Premier League is sponsored by Barclays Bank for

a reported ‘£40million per year deal; however this is not their

only sponsorship deal’ (Kew, 2003). The figure below shows the

main sponsors for the PL, however this is dated source and only

used to indicate the number of sources in football.

Figure 1 - Sponsors of PL clubs (Kew, 2003)

Sponsors have started to provided enough to sport to begin

having their say in the running of events ‘in a similar way as

media companies have over scheduling due to broadcasting’

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(Bridgewater, 2010)

Overall it is clear that the Premier League is covered more comprehensively by

the media and sponsors. BskyB is a key stakeholder within the alliance acting as

a major media company and sponsor with the FA covering the football section of

the alliance. However this opens the discussion to which other stakeholders are

involved to be explored later.

2.3 Technology weighs in- When did the alliance form?

English football began to be ‘televised in 1937, with an Arsenal v Arsenal

Reserve football match broadcast live. The first international fixture to receive live

broadcasting was England v Scotland in 1938, the same year the first FA cup

final was shown live’ (Kennedy & Hills, 2009) showing how far back the alliance

started to form, yet many authors believe that only recently has the alliance

expanded and gained such recognition.

Football’s alliance ‘coincides with the sports globalisation’ (Sandvoss, 2003) as

the world gained better coverage and technology more football was able to view

on TV. Rowe begins to explain globalisation of sport ‘opened up a platform for

sponsors and media companies to exploit’ and ‘are expanding’ (Rowe, 2004).

This view is again argued by Morrow who states ‘broadcasting is in decline due to

the European economic climate’ (Morrow, 2003).

Although most authors seem to feel the globalisation or commercialisation of

football has increased the standing and power of the media and sponsors within

the alliance many disagree to when this formed. Dobson and Goddard explain a

‘steady increase in the economics of football with few key milestones in its growth

dating back to early 20th century’ (Dobson & Goddard, 2004) but this view is

argued by Crowther who explains the ‘dramatic increase of technology and media

coverage caused by BskyB has led to an increase in the commercialisation of the

sport’ (Crowther, 2000). A third view, showing the wide range of opinion on this

22


matter, from Boyle & Haynes elucidates the growth has been ‘constant but

inconsistent since the development of new technology’ (Boyle & Haynes, 2009).

Television companies are under pressure to fill a lot of channels and therefore

time with good viewing for audiences around the world. ‘Live sport is a much

cheaper exercise than TV dramas and soaps’ (Boyle & Haynes, 2004) showing

why technology has impacted the alliance as the media now need fooball to fill

their planners giving sponsors more opportunites to exploit.

This appears to be the least translucent section of the alliance with a large

deviation in views over the time of which the alliance formed. However many

seem to feel the creation of new technologies such as TV, 3D TV and HD TV

have all played a part in the development of a alliance (see appendix 1). Many

agree that the alliance was formed a long time ago but has become more

prominent in recent time due to the improvements in technology. ‘The creation of

television led to a stronghold on coverage of sport in the UK’ (Boyle & Haynes,

2004) showig how key milestones changed the viewing of sport which is further

backed by Sandvoss who clarifys how ‘social media and new technology has

added to the commericalisation and globalisation of football’ (Sandvoss, 2003)

2.4 Premier League hand-me-downs- Where do Football League clubs fit in?

The PL is shown to be preferred over the FL. Football being a business means

that those not generating enough money will be left, which is clearly the case in

football. However the FL is still bringing in large quantities of money which the

media and sponsors have started to pick up on with ‘intensive discussions over

deals with the Football League and a range of broadcasters’ (Boyle & Haynes,

2004) starting to emerge. The large amounts of income to the FL is

comprehensively looked at by Szymanski ‘The premier league pays the football

league £20 million a year for player development... saving football league clubs

from bankruptcy as the level of interest at that level does not warrant enough

commercial deals’ (Szymanski, 2010).

23


Szymanki’s statements are contradictory to Morrow, stating the level of income

the football league brings in via coverage when ‘broadcasting fees in 1983 were

£2.6 million and 20 years later had raised to £367 million’ (Morrow, 2003).

Although they disagree on whether the FL can stand by itself all authors show the

football league is bringing in revenue. ‘The Premier League offers Football

League ‘solidarity package’ to ensure a fairer distribution of revenues across the

professional English game’ (Beech, Horsman, & Magraw, 2008). This view of the

PL aiding the FL is not a popular one and argued at great length by Emery &

Weed who feel ‘The gap between the Premier League and the rest of English

Football grows and has abandoned Football League’ (Emery & Weed, 2007)

Rowe identifies that money has ‘flowed into English Football League in the last

decade or so... which has significant implications on the relationships between

the club and their stakeholders’ (Rowe, 2004). This view shows the FL does bring

in revenue and fits in the alliance but needs to be managed to ensure the clubs

do not prioritise keeping the media happy over the clubs structure.

2.5 Greed or meagre income- Why is there a discrepancy?

It has become obvious that clubs have started to rely on the income from

sponsors and media companies to run their club. This is a dangerous tactic as

this income is not a guaranteed.

There are several examples of clubs becoming reliant on the alliance as ‘clubs

now rely on broadcasters for income’ (Crowther, 2000). This may ‘only happen to

those clubs which have been mismanaged’ (Emery & Weed, 2007) but the large

number of clubs which have faced harsh financial times due to a lack of income

and support outweighs those which we mismanaged ‘with 68 clubs becoming

insolvent’ (Beech, Horsman, & Magraw, 2008) in recent times.

Rowe argues that the clubs should have better management and ‘although the

collapse of ITV Digital could not be foreseen, 10 out of 24 League One clubs had

liabilities greater than their assets’ (Rowe, 2004)

24


Morrow identifies that one of the main news stories in sport ‘since ITV Digital

collapsed is “Financial difficulty in the FL”’ and ‘BskyB rule over football’ (Morrow,

2003). Rowe agrees and shows that BskyB have a part to play in the discrepancy

with ‘pay-per-view events only covering specific events and never reaching lower

levels’ (Rowe, 2004)

FL clubs ‘created budgets and projections based on income which never came’

(Emery & Weed, 2007) and led to years of attempting to right the wrongs made.

The media companies and sponsors ‘sold FL clubs a dream’ (Crowther, 2000)

resulting in the financial meltdown of many clubs.

The discrepancy was then created and since then has grown due to ‘the rapid

expansion of the PL’ (Dobson & Goddard, 2004) and the FL playing constantly

catch up

2.6 The Referee- How does the FA control the alliance?

Many authors cover the FA regulations over broadcasters with contradictory

views. Beech gives details on how the FA control who can gain ownership of

clubs to ensure financial security via a ‘Fit and Proper Person Test and the threat

of points deductions’ (Beech, 2011). However as stated the FA have failed many

clubs by allowing ‘68 to become insolvent’ (Beech, Horsman, & Magraw, 2008).

The FA does not only look over the finances of the clubs but also the coverage.

As shown, many authors feel the alliance has begun to take over the sport,

‘controlling timings and scheduling of games’ (Horne, 2006). The FA need to

regulate the control to ensure the morals and integrity of football is kept.

Figure 2 below shows the FA’s hierarchy for rights at football events. It shows

how many and various sponsors can be involved but the FA overlooks each

section to ensure it is kept within regulation (Desbordes, 2007)

25


Figure 2 – FA rights for broadcasting (Desbordes, 2007)

Rowe feels the FA has ‘allowed the sport to become commercialised’ (Rowe,

2004) with many negative outcomes particularly for clubs already struggling. On

the other hand Morrow feels that the ‘FA provide support for relegated clubs via

parachute payments for two seasons’ and ‘the FA have given into pressure from

major teams’ (Morrow, 2003) increasing the gap between the FL and PL, a view

which is cited by Crowther who adds ‘the FA faces a challenge to ensure they

maintain control’ (Crowther, 2000).

Crowther’s idea of a challenge between regulators and broadcasters is

acknowledged by authors who identify ‘broadcasters have rejected FA proposals’

(Greenfield & Osborn, 2011) and ‘require government help to regulate

broadcasting’ (Nicholson, 2007). Some authors however feel that the income the

FA has gained from the alliance has ‘been unevenly spread across the leagues’

(Szymanski, 2010)

Overall this shows that the FA is undoubtedly a major stakeholder and in charge

of the football section of the alliance. However it is clear they face a hard

challenge to maintain major control of the alliance and some authors feel they

have not fairly distributed the benefits of the income, resulting in a discrepancy

between PL and FL clubs.

26


The table below summarises the two main author’s main views throughout their

books based on the previous sections.

Table 4 – Rowe and Morrow Comparison

(Rowe, 2004)

Sport, Culture and The Media:

an unruly trinity

(Morrow, 2003)

The People’s Game; football,

finance and society

2.1

What is the

alliance

An unruly trinity. Portrays the

alliance as an aggressive battle

for dominance between the

members of the triangle.

Describes the alliance as the

longest relationship football has,

depicting friendly mutual

agreement.

2.2

Who is in the

alliance

Sky is a dominant force and

blurred lines form over who is in

control with the FA attempting to

keep its morals

The FA are feeble in controlling

the alliance which is controlled

by the media and sponsors

2.3

When did the

alliance form

Formed many years ago and

expanding rapidly with no signs

of stopping

Formed years ago but in decline

due to the worldwide financial

decline

2.4

Where do FL

clubs fit in

Rarely mentioned. Emphasis is

based the media controlling

football as a whole

Maintain control over their own

finances and create enough

interest to warrant a position in e

alliance

2.5

Why is there a

discrepancy

The force of the media has held

back the FA but improvements

are visible and control is being

restored to the FA

The FA have failed to maintain

control of the alliance and left FL

clubs abandoned

2.6

How do the FA

control the

alliance

Again the media has taken

control and been allowed to

commercialise football but is

beginning to regain control

Provides relegated clubs with

parachute payments which

increased the gap, showing little

control over the alliance.

Overview of

aim

Appears to favour the FA in

signs of improvement but shows

the alliance has taken over.

Shows the PL and FL have a

gulf between them due to the

alliance and benefits are felt

27


Does not show any specific

discrepancy between FL and PL

and therefore does not only

effect PL clubs

much more strongly by PL clubs

due to the FA’s lack of control

In conclusion this chapter has used the objectives to shape academic research and

create questions to be explored in the next chapter making use of secondary data,

factual and empirical sources.

2.7 Research QuestionsThe research questions which have been shaped by academic research and will be

observed to answer the objectives in the next chapter are:

Table 5 – Research Questions

1. Has BskyB always dominated media coverage of football and will it dictate

for the foreseeable future?

2. What effects of the alliance have caused financial discrepancies between PL

and FL clubs?

3. Does the FA encourage the PL and FL discrepancy or has the PL forced its

own development, caused by the alliance, making the FA control redundant?

These questions relate clearly to the objectives and when explored in the following

chapter will answer the objectives and in turn answer the aim.

CHAPTER THREE 28


BACKGROUND: Findings from Secondary Data

Background: Findings from Secondary Data

29


This chapter will make use of newspaper articles, reports and interviews to answer

the objectives of this report. A basic timeline of the alliance shows the development

of the ‘Golden Triangle’ followed by more in-depth research into who the companies

in the alliance are, whether the FL and PL discrepancies are caused by the alliance

and how the FA have attempted to control it. The research questions from the

literature review have specified the secondary data collected and referenced in this

chapter.

3.1 Alliance TimelineFootball spans more than 100 years beginning in 1863 in England when the

Football Association in England was formed - becoming the sport's first

governing body (FIFA, 2007). ‘A lot can change in 10 years and the monopoly

money in football means the rich become unreachable’ (Slater, 2013)

Table 6 – Alliance Timeline

Event Description Date

Football

reaches

Europe

The first Continental European team forms in Denmark showing the

spread of football across the world (Kjøbenhavns Boldklub, 2010)

1879

English

Football

Expands

Second Division formed as The Football League expands to 28 clubs

(Football League, 2013)

1892

Football

Televised

Arsenal v Arsenal Reserve football match broadcast live (Kennedy &

Hills, 2009).

1937

Big games

on TV

The first international fixture to receive live broadcasting was England

v Scotland in 1938, the same year the first FA cup final was shown

live’ (Kennedy & Hills, 2009)

1938

First FL

game on TV

First ever live Football League match shown on TV - Blackpool v

Bolton Wanderers. (Football League, 2013)

1960

Match of the

Day

The BBC first broadcasts Match of the Day, which becomes an

instant hit with viewers. It soon attracts a quarter of the adult

television audience. (The Guardian, 2003)

1964

Advertising ITV introduces a new programme ‘The Big Match’ making use of 1968-

30


comes in sponsorship for the first time on televised football (ITV, 2012) 1992

Shirt

Sponsor

Liverpool were the first British club to have a shirt sponsor (Hitachi in

1979) (The Guardian, 2000)

1979

First title

sponsor

Canon sponsors the football league as a title sponsor (Football

League, 2013)

1983

Stadium

naming

rights sold

The first football ground in the UK to be named after its sponsor was

Scarborough's stadium, named after the frozen chip company McCain

(Donlan, 2005)

1988

PL and FL

begins

Premier League breaks away to create football league and premier

league divisions (Football League, 2013)

1992

BskyB gains

rights

In a dramatic smash and grab, Sky wins the rights to live Premier

League football in a £304m five-year deal (The Guardian, 2003)

1992

MUTV Manchester United TV opens, the first TV channel dedicated to one

single clubs begins

1997

ITV Digital

fails

(detailed

below table)

ITV Digital collapses, still owing £178.5m to the Football League,

which it fails to get back in court. The dramatic bankruptcy puts

dozens of small clubs in jeopardy and signals the end of the football

rights gravy train. Sky picks up the Nationwide League and

Worthington Cup rights for a song.

2002

FA finance

control

FA introduces ‘Sporting Sanctions’ – a mandatory deduction of 10

points for any club using any insolvency process to reduce debt


2003

Setanta fails The Dublin-based broadcaster launched Setanta Sports in 2004 as a

direct competitor to Sky in the hope of sharing in the global riches

associated with the Premier League. It soon found that trying to win

this particular sporting title was a lot tougher than it first thought. It

went into administration in 2009 (Burrel, 2013)

2009

Social

Media

FL and PL make use Twitter and Facebook to contact fans directly


2009

One major event within the timeline was the collapse of ITV Digital. An Ofcom

report (figure 3) on broadcasting costs explains that the football league was

bringing in many commercial partners however these partners could not afford to

stay afloat leading to missed payments to the football league, explained further

later.

31


Figure 3 – ITV Digital’s funding for the FL (Ofcom, 2007)

Making use of the Ofcom report again, a case study was provided to show the

effects from the ITV Digital deal which collapsed.

Figure 4 – Effect of ITV Digital collapse (Ofcom, 2007)

It shows the financial impacts which affected FL clubs for years after and some

clubs still feel the effects of now. When ITV Digital could not complete its

payments to the clubs many clubs went into financial crisis due to their

dependence on the income which is similar to PL clubs relying on BskyB income.

32


3.2 Murdoch’s StrongholdRupert Murdoch took control of BskyB and first bid for rights to broadcast football

in 1988 (The Guardian, 2003). Since then BskyB has controlled the majority of

football broadcasting in the UK. His ruthless approach to management hasn’t

always made him popular but there is no doubt BskyB has remained dominant

seeing off major competition. In reference to Setanta’s decline and eventful fall

into administration ‘Sky - Setanta's rival for showing Premier League games -

said its competitor had "tried to grow too fast and lost control of costs’ (BBC

news, 2009) showing little pity or mercy for its competitors and shows just how

strong BskyB are as a broadcasting force. ‘BSB and ESPN faced similar

problems and failed to compete with BskyB under Murdoch’ (Burrel, 2013). This

is backed with another BBC news article showing ‘More than 80% of live

televised Premier League games will appear on BSkyB after the broadcaster

snatched some of the TV rights from rival Setanta’ (BBC News, 2009).

Before Murdoch’s BskyB took control the cost of broadcasting rights were vastly

different. BskyB changed the way in which rights were gained. In 1983 rights to

show live matches for 2 years cost a mere £5.2m (Fisher, 2014) and ITV gained

a four year deal worth £44m in 1988 (Arsenal FC, 2013). This was followed by

Murdoch’s shocking successful bid in 1992 despite ‘ITV being the frontrunners,

Rupert Murdoch tabled an incredible £304m bid for the five-year deal and blew

their rivals away’ (Rodrigues, 2012)

Controlling such a major title as football’s main broadcaster in the UK has many

benefits. Although the original investment may seem ludicrous to many, reaching

a total cost of £1.1billion spread across the PL clubs (Premier League, 2012), the

rewards and income generated is vast.

The figure below shows the broadcast payments for the 2011/12 season and

shows the large difference between PL and FL clubs

33


Figure 5 – Broadcasting payments (Premier League, 2012)

Murdoch’s influence on the alliance is abundantly clear controlling with such

forcefulness to ensure his company remains in charge. For example his

company has bought sole exclusivity of broadcasting the games. This then

prohibits the BBC from broadcasting full football games covered by BskyB and

limits them to showing highlights only. This embargo exists even within BBC's

ability to broadcast footage via media in the form of internet and not even the

highlights show 'Match of the day' is available on the BBC's On Demand iPlayer

system for viewing after its original broadcasting (CCahill , 2012)

The Premier League relies on broadcasting for 50% of its revenue as the figure

below indicates. BskyB being the major stakeholder of the broadcasting right

clearly has a large influence of the running of the PL as it is by the far the biggest

investor. However their influence has led to FL clubs risking their very structure

and business strategy to become a PL club to gain the benefits of BskyB and

other media companies ‘Championship clubs continue to overstretch off the field

as they seek playing success to reach the Premier League’ (BBC, 2013). This

34


shows how the discrepancy between PL and FL clubs could have been caused

by the alliance and by stakeholder such as BskyB.

Figure 6 – How the PL makes its money (BBC, 2013)

Figure 7 shows the media which were given live coverage and highlights of

football in England between 1992/3 to 2006/7. It clearly shows Sky and BBC to

be consistent in ownership in past years and indicates Sky beating other

companies with Setanta sports and Telewest rivals no longer having any

coverage since this.

Figure 7 - Ofcom Report (Ofcom, 2007)

Although BskyB is clearly leading the way, Murdoch’s stronghold of football has

come under fresh competition from BT and with BBC and ITV still retaining their

rights (BBC Sport, 2009) BskyB is seeing their comfortable position under threat.

35


‘Under ITV’s new television deal, Sky will be unable to show the Champions

League for the first time since 2003’ (BBC Sport, 2013)

3.3 BSkyB V BTBT sport has gone head-to-head with BskyB to become the broadcasting giant of

football in the UK. ‘Telecoms giant BT has launched its UK sports channels in a

challenge to the two-decades-long sports-TV dominance of Sky which has

already seen off ITV Digital, Setanta and ESPN, which all temporarily entered

the pay-TV football market’ however ‘BT has spent £738m over three years for

the rights to 38 live Premier League matches a season while Sky has paid

£2.3bn for 116 matches, including FL games, a season’ (BBC Sport, 2013).

BskyB have ensured they have kept hold of their FL rights which BT Sport

appeared to have no interest in, Media companies’ desperation to own PL rights

have left FL clubs with a large financial gulf and a lack of coverage.

BT took an aggressive approach ‘BT is to offer free Premier League football

coverage to its broadband customers, the telecoms company says. The

announcement is a signal of BT's intent to challenge BSkyB's dominance of the

UK's sports pay-TV market’ (Cellan-Jones, 2013). Nevertheless BskyB replied

with a similarly aggressive procedure: ‘Sky have signalled their intent to tackle

new rivals BT head on in the battle for audiences, advertisers and subscribers

with the publication of the broadcast schedules’ (Farquhar, 2013)

BT’s rights led to an explosion of users to their service with user numbers

reaching 2 million new customers (Ford Rojas, 2013) which may have been

mainly due to their winning of major events such as the Champions League in a

£897 million deal (BBC News, 2013). Not only did BskyB lose out on this deal

but share prices in the company fell due to the new competition, falling 10.9%

(Peston, 2013).

An interview with BSkyB’s investment manager, Bradley Russell showed how

BskyB had been hit hard and unexpectedly by BT and questions whether BskyB

could bounce back came into focus? Mr. Russell did state ‘there can't be this

36


situation where outbidding each other goes on, so we'll just have to see who

comes out on top’ (Russell, 2014)

A lot has been said and written about the two companies’ competition to become

the main stakeholder of the alliance in football. However very little rivalry has

been apparent over FL broadcasting rights. This shows how the PL has broken

away from the FL and how financial discrepancies have formed between the FL

and PL.

A research question of this chapter was to explore if BskyB always dominated

and if they will continue to dominate in the future. This has been clearly shown in

this section as BskyB dominating in the past beating all competition and

changing the way football is viewed. However it has come under serious

competition and is no longer the only main broadcasting media company.

3.4 A Widening GulfThe differences between PL and FL clubs are growing in variety and magnitude.

It has resulted in many FL clubs feeling that the rich PL clubs become

unreachable. Despite there being more revenue made in the FL than ever before

the PL recorded a turnover of over 6 times the amount of the FL according

to Deloitte's Annual Review of Football Finance (Deloitte, 2013). The major

difference between the two revenues is the money brought in via broadcasting

deals and sponsorships, the two other components of the alliance. Barclays

have recently renewed their contract to sponsor the PL paying more than £40

million a season to do so (Goodley, 2013). This compares to Sky Bet creating a

new deal with the FL to sponsor all 3 divisions for no additional money on top of

the broadcasting deal already in place (Sharma, 2013). This shows the level of

money thrust into the PL for numerous deals compared to the lack of

engagement the FL has with major companies widening the financial gap

between the two.

37

http://www.deloitte.com/view/en_GB/uk/industries/sportsbusinessgroup/sports/football/annual-review-of-football-finance/


Less media coverage and sponsorship open the FL to more than just simple

income dilemmas. The PL is beamed around the world attracting the best

footballers from all corners of the world, but the FL does not have their games

shown to the same extent and therefore cannot advertise itself as the PL does.

The PL players consists of 20% less English born players than the Championship

showing how the FL divisions haven’t attracted the worldwide audience and

players to improve the fundamental standard of football. In an interview BBC

presenter Clare Balding explains that ‘this rise of globalisation in football has

prioritised the PL to utilize the high income of the league’ (Balding, 2012)

The graphic below shows the various shirt sponsors of PL clubs in 2000. FL clubs

received less than 10% of the income from shirt sponsors in comparison to PL

clubs (Dobson & Goddard, 2004)

Figure 8 – PL shirt sponsors (Dobson & Goddard, 2004)

Table 7 - showing the much smaller average income of FL clubs in comparison to

PL.

Average income from broadcasters for FL and PL divisions (Deloitte,

2013)

Premiership £25m

Championship £6.6m

League One £5m

League Two £3.3m

To summarise, FL clubs have to be run more like businesses, trying to improve

while desperately trying to break even with a minimal income, whereas Premier

League clubs look to reinvest their high income in a way that allows them to

38


improve as a team. With external investment a regular occurrence breaking even

is not a high priority. The FL is very difficult to operate in, with boardroom staff

having to try their hardest to find a successful balance between the two, or end

up risking their clubs long-term future if they are unsuccessful (Howells, 2012).

3.5 Parachute PaymentsParachute payments are defined as ‘a payment in the nature of compensation

made to a “disqualified individual” triggered by a change in control. This includes

all payments or benefits that would not have been made if no change in control

had occurred.’ (Martin, 2010) To make this relevant to this report parachute

payments occur when a PL club is relegated (dis qualified individual) and

receive payments or benefits from remaining PL clubs in parachute payments

over following years.

They are seen by many FL clubs as a reward for failure in the top league and

expands the gulf between the FL and PL with relegated clubs having much better

finances and therefore much more likely to regain PL status. They are seen to

‘save relegated clubs lives but unfair to all other teams’ (Moore, 2013) due to the

additional income received to PL clubs relegated which has ‘crippled the

competition while clubs relegated from the Premier League are given enormous

parachute payments, their Football League rivals are being left behind to the

detriment of competition’ (Storey, 2013).

These parachute payments were created and are given out by the PL, with the

FA overseeing and accepting of these payments. ‘With the PL’s helping hand,

since 2010, clubs relegated for the PL have received £15m then £17m for the first

two seasons, then £8m for the two seasons after that’ (Wilson R. , 2013). This

has led to the media attacking the PL for ‘unduly interfering’ with the game and

it’s ‘heavy-handedness with FL clubs in the tortuous negotiations about how

much of its forthcoming TV billions it will share with the rest of football’ (Conn,

2013). It shows another attempt by the media to control the direction of the game

but this time showing support to the FL as it wants to decrease the financial and

talent gap between the PL and FL.

39


FL clubs have reacted badly and campaigned with the media to ensure these

parachute payments do not impact so heavily on the league ‘the figures have got

the FL in a frenzy and there will be a massive campaign to try to embarrass the

PL into splitting the annual cash handout – worth £131.7m in total – more evenly.

One FL club stated “Those figures have gone down like a lead balloon and

people are saying ‘enough is enough.’ (Nixon, 2013) Many clubs worry that the

parachute payments will ‘permanently damage the integrity of the FL’ (The

Independant, 2013)

It shows how the PL is trying to dominate English football and how the money

received from sponsors and the media have created a massive financial

difference between the FL and PL. As well as showing this discrepancy is partly

caused by media and sponsors within the alliance. It also begins to show that the

FA could help control the discrepancy but have failed to do so with the

introduction of parachute payments.

3.6 FA Steps InAlthough the FL feel the FA have neglected them in favour of the PL in certain

circumstances such as parachute payments, the FA has introduced regulations

and maintained control of many aspects of football to ensure the discrepancy is

minimised and the alliance does not become commercialised and controlled by

the media and sponsors.

Firstly, through ensuring historical competitions such as the FA Cup are still held

in high regard and open to all clubs at all levels, the FA has given FL clubs a

chance to compete at the highest level and receive extra revenue with half of all

gate receipts being given to each team (FA, 2012).

The most obvious regulation brought in recently by the FA to ensure the alliance

does not seize control is ‘Financial Fair Play.’ This provides support and

regulations to decrease the number of clubs under financial difficulty and ensures

a more even spread of wealth’ (FA, 2012). This regulation has resulted in the

‘Premier League agreeing a financial cap and clubs will face point’s deduction if

they breach new rules’ (Sale C. , 2013) and in basic terms means ‘from the

40


2013/14 season Premier League clubs cannot make a loss in excess of £105m

aggregated across seasons 2013/14, 2014/15 and 2015/16’ (Premier League,

2013). Richard Scudmore, chief executive of the PL, hopes this will ‘restrict the

financial loss and decrease the financial gap of the elite’ (Sky News, 2013). The

FA took this decision from media pressure and clubs asking to ‘end the financial

craziness’ and ‘introduce caps for PL clubs to aid the whole FL‘(Conn, 2011).

However the FA delaying their response to media control over football forced the

governing bodies of the FL and PL to create their own regulations. Within their

regulations it clearly states that all media and sponsorship deals must be

‘approved by the FL board to ensure it is in the best interest of the league’

(Football League, 2013). This action taken by the FL shows how the media has

become empowered by the lack of FA action with many feeling the FA has

‘signed away any right to control the media’ (Strugeon, 2010)

Media control over the FA appears to be a popular opinion with players

themselves feeling the media has control over the FA such as footballer Luis

Suarez who claims ‘the powerful British media has control’ (Suarez, 2013).

Suarez is not the only player to claim the FA has let them down in favour of the

media as some players feel the FA ‘considers the demands of TV companies of

"greater importance" than the health and safety of the players’ (Fifpro , 2013)

The FA also lost its case to show mega-events such as the World Cup on ‘free-

to-air TV’ (Wilson B. , 2013) presenting another failure of the governing bodies to

control the media. On top of this technology has began to enter the game from

media pressure which some feel ‘could spoil the spirit of the game’ (Dirs, 2013).

It has also become clear that those teams which relied on the income during their

time in the PL struggled to cope with the lack of income when relegated into the

FL as shown in figure 9. Many teams found they were reliant on the bigger

income in the PL and went into administration, causing further relegations in

some cases which led to increased financial issues.

41


Figure 9 - Insolvent clubs (Beech, Horsman, & Magraw, 2008)

On the other hand the FA has previously introduced a competition separately for

FL clubs only. The ‘Football League Trophy’ was introduced in 2006 and provides

a new income for FL clubs from sponsorship of the competition which is currently

sponsored by Johnstone’s Paint (Johnstone's Paint, 2014). This shows the FA

making steps towards providing FL clubs with a platform to exploit the alliance

but this tournament has little standing amongst elite teams.

All of this provides evidence that the FA attempted to maintain control of the

alliance but has acted late or too weakly to combat the media and sponsors

forcefulness.

Overall this chapter has used secondary date from newspapers, reports and

interviews to help answer the research questions of the literature review.

Table 8 – Research questions summarised

1. Has BskyB always

dominated media

coverage of football and

will it dictate for the

foreseeable future?

Research question one was explored and showed the battle

between BskyB and BT. The timeline of the alliance showed when

BskyB came and changed the way football broadcasting occurs. It

becomes clear that BskyB have always dominated since the

company became involved. Sections 4.1, 4.2 and 4.3 all show how

42


BskyB have controlled the media coverage for years without much

competition. However as shown BT have now become a large threat

and rivals to them relating closely to objective one.

2. What effects of the

alliance have caused

financial discrepancies

between PL and FL

clubs?

The alliance timeline helps to show when discrepancies and the

alliance were first visible. Evidence such as the failure of ITV digital

shows how clubs became reliant on the alliance, and when that

failed FL clubs were left in financial ruin. In comparison PL clubs

have always had enough income, greater media coverage and

sponsorship to stop this occurring. The effects of the alliance have

caused financial discrepancies due to the investment size in the PL

compared to a much more modest one of FL. This has caused the

gap between the PL and FL to widen in many aspects including

quality, coverage, FA attention and most obviously financially.

3. Does the FA encourage

the PL and FL

discrepancy or has the

PL forced its own

development, caused by

the alliance, making the

FA control redundant?

This chapter shows the FA attempts to either control or stop the

effects of the alliance. Introducing competitions such as the Football

League Trophy and maintaining competitions e.g. FA Cup the FA

has shown their attempts to provide the FL with coverage. Financial

fair play has tried to reduce the gap between the rich clubs and the

rest of the FL yet there appears to be evidence the PL has already

got away from the FA rule over finances. With PL initiatives such as

parachute payments the rich clubs will maintain their position at the

top and leave FL clubs to suffer. The FA has begun to put measures

in place to stop and help clubs in financial difficulty however the PL

has expanded beyond the reach of the FA in many cases and now

encourages the growth of the PL to exploit revenue and recognition.

43


CHAPTER FOUR

RESEARCH DESIGN

44


Research Design

This project was conducted without primary research. Justification for using

secondary data was explored earlier. Nevertheless to be sure the research methods

used were appropriate; background research was conducted showing how reliable

and realistic gathering primary research would have been.

4.1 Research ApproachesResearch can be undertaken using different approaches.

Quantitative/Qualitative

Applied/Basic

Deductive/Inductive

(Neville, 2007)

Figure 10 – Quantitative and Qualitative data (Neville, 2007)

45


The figure above shows quantitative data is the emphasis on numerical data

showing statistics and can presented in graphics easily. Qualitative data is the

thoughts and emotions behind answers. It is deeper approach and analyses

answers to understand behaviour. This research has made use of both

quantitative and qualitative approaches in secondary research.

A basic approach is undertaken to improve knowledge without any particular

applied purpose whereas applied approaches are used to apply findings to solve

a particular problem (Husse & Collis, 2003). This research applied knowledge,

academic research and secondary data and applied it the aim and objectives of a

particular problem showing an applied approach to research.

Finally, deductive approaches are used when a broad idea is narrowed into a

specific and particular situation in comparison inductive approaches take a

specific situation and expand this into a broad ideology. (Coady & Lehmann,

2008). As this research focussed on a specific issue within a broad ideology and

concludes with a specific answer to a specific aim this research is using a

deductive approach.

4.2 Research TechniquesThis research did not conduct any primary research. This techniques and

methods used to collect primary research e.g. interviews, focus groups,

questionnaires etc where not applicable or suitable to this research topic.

To gain supportive and relevant data from a primary source the research would

have had to contact significant members of the football community. Due to the

wide scope of clubs being looked at very specific personnel would have been

needed to gain data which would add substance to this report. Attempts to reach

these varying individuals were made once ethical approval to do so was gained.

Members of the football community use agents as a middleman for those trying

make contact. Several emails and phone calls were used to contact individuals;

Gary Lineker OBE (previously an international footballer with experience playing

for both FL and PL clubs and currently a highly rated pundit) was one member

which contact was attempted via an application (see appendix 2) on his website

46


however this was unsuccessful when his agent explained he was too busy for

any interviews. This was a similar story for many footballers with a football

background matching Gary Lineker. Media and sponsorship companies were

also unwilling to interview to discuss the alliance in any depth and contact

information on relevant members of staff within the organisations found difficult to

find. This justifies using secondary data research as this reports technique.

4.3 Sampling IssuesContact with suitable individuals for primary research was too difficult to use as

part of this research. Communication with football clubs locally such as Luton

Town FC was possible conversely. The football club had experience playing in

the FL and top division in its history. Despite this the club has currently been in

non-league football since 2009 and would therefore be less relevant due to the

recent surge in media.

This meant that secondary data and academic research were the only suitable

samples that could be used and as these sources were either unrealistic or

irrelevant and justifies the primary research being omitted from the research.

4.4 Data Collection MethodsThe academic research shaped the method of the secondary data collected. The

literature review gave an in-depth background to the alliance. The research

questions shaped to help answer the objectives and gave a clear structure to

help conclude the overall aim.

The background chapter of secondary data then expanded on the detailed

background created by the literature review. This chapter approached the

objectives differently but still expanded on the research questions of the 5 W’s

from the literature review. The first sub-heading gave a timeline of the alliance for

a brief history on how football has changed to aid understanding. This was

followed by a detailed look into the history of BskyB and its dominance over the

recent past which in turn was followed by its recent competition with BT. This will

relate to the ‘Who’ research question and develops the argument for objective

47


one. Objective two was looked at by the next subheading showing a widening

gulf and gave a more comprehensive look at the ‘Why’ research question. Finally

the rest of the subheadings helped answer objective three and ‘How’ the FA is

attempting to control the alliance.

Secondary data and academic research were justified with the use of over 80

various sources as part of the data collection.

4.5 Designing Collection MethodsThroughout the previous two chapters sub-headings were introduced to add

logical flow to the argument introduced by the aim, and aid to the ease of

answering the objectives. The use of these questions needs to be justified. The

literature review was used to give the academic research behind the argument. It

set the scene and detailed opinions of academics on the subject area. The sub-

headings in this chapter were the research questions; the chapter used the

method of the 5 W’s (Who, What, Why, When and Where) as well as the How in

relation to the alliance and ‘gives a reliable and specific background to any topic

shaping projects’ (Marchiori, 2004). This meant all areas of the alliance which

were applicable in answering the aim were covered.

On the whole the design of the project is justified by the use of relevant and

realistic data sources to give a reliable argument and helps to provide an

accurate answer to the overall aim. The research has also created a justifiable

structure by means of appropriate research questions and subheadings all

relating to the objectives which are in place to gain a valid response to the aim.

4.6 Data AnalysisGraphics will help show the numerical values of authors and data for each side of

the argument per objective. Each objective offers an argument; this research

explores these opinions and presents them to give an overall view. For example

many authors feel that FA has not done enough to control the alliance; the

number of authors or secondary data argument for or against this point will be

presented in a graph giving an indication to which is more popular.

48


These opinions vary however, and a clear overwhelming opinion may not be

reached. In this case the research questions may not be conclusively answered

and will lead this report to suggestions of further readings.

4.7 Ethical ConsiderationsBefore the research could be produced ethical approval was needed. Ethical

approval was granted on 21/11/13 (see appendix 3). Primary research was not

applicable for this report and to persist in attempting to gain contact with those

needed would have breached the ethical code of the research. Throughout the

report, sources have been appropriately and correctly referenced to ensure no

copyright ethical issues arose.

4.8 Matters of Validity and Reliability Research needs to be valid and reliable to have any standing. The source

gathered need to be factual and trustworthy.

Figure 11 – Valid and reliable data (McMillian & Weyers, 2011)

Figure 11 shows a checklist of ensuring sources are reliable. The more of these

that can be ticked off shows the more reliable the source is. It shows the more

information available about the source the more valid its references are.

49


This research has ensured that sources have information available to ensure the

research is valid and reliable itself. Over 80 sources have been used to back up

arguments and argue against each other. The more sources on a similar topic

area also help to show the reliability of the sources.

50


CHAPTER FIVE

CONDUCT OF STUDY

51


Conduct of Study

5.1 The Location of Research and Research InformantsThis research took place within the University of Bedfordshire premises. As

discussed no primary research was conducted and therefore no further locations

were needed.

By using exclusively secondary research the University of Bedfordshire (UoB)

had ample facilities for the needs of this topic. All information could be gained via

the library, online academic sources and secondary data online or in

newspapers. This justifies the location of University of Bedfordshire and the

informants used.

5.2 Collection of DataData has been pooled from nearly two years of research giving a number of

sources. These academic sources are accessible online and within the UoB

library (University of Bedfordshire, 2006). UoB’s library contains various

academic sources from many different topics as well as an online system

covering all aspect of the topic being covered. These sources were read,

recorded and referenced to make use of during the research and shape the

discussion

Secondary data was similarly recorded and accessible online meaning they were

freely available whenever needed and updated regularly. These sources were

collected and referenced on a safe database which the researcher had access

to.

Again the exclusive use of academic and secondary sources without primary

research has resulted in the easy collection of data without any real ethical

consideration needed.

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5.3 Analysing Data CollectedOver 80 various sources were directly used at least once during the report have

been carefully selected to add substance to the argument presented by the aim.

Academic sources gauged a background to the subject area showing academic

research on similar topics. Secondary data was taken from four types;

newspapers, reports, online blogs and interviews.

These sources had to be analysed and conducted in a clear structure to conclude

the topic. As stated previously this would be done by visual graphics such as

charts and graphs to provide the reader with a definite answer to the objectives

and aim.

5.4 Research EthicsAs stated this research was granted ethical approval to be conducted. Many

areas needed to be addressed. All areas of ethical research was considered;

Honesty, Objectivity, Integrity, Careful, Openness, Respect, Confidentiality, Non-

Discriminatory and Legality (Bell, 2010).

Table 9 – Ethical Research

Honesty Needs to be considered with references and quotations

taken. These need to be honestly used and not taken out of

context as to diminish its meaning.

Objectivity Means avoiding or minimizing bias or self-deception. As well

as avoiding disclosing personal or financial interests that may

affect research.

Integrity Has been shown by keeping the promises and agreements in

the research and the research have acted with sincerity

throughout.

Careful Research was conducted by ensuring all data was correct

and checked, critically analysing the sources as well as the

researchers own work.

Openness Was ethically done by showing the results and sharing all

53


sources within the reference list at the end.

Respect Of intellectual property was shown to all sources by keeping

to copyright and patents as well as only using published

works.

Confidentially Is used in research when colleting primary research which

this research has not made use of.

Non-

Discriminator

y

This research has not excluded any works on the basis of;

sex, age, ethnicity, religion, sexual orientation or any other

factor other than the intellectual components

Legality Has been kept by ensuring all relevant laws and governance

over sources has been adhered to such as copyright

5.5 Changes after Interim StageWhen the research was reviewed via an interim report it became clear that the

research was too broad. The topic area at the interim report was ‘To investigate

the negative impact the sport mass media has on the England National Football

team’ with four main objectives. In hindsight it is clear that the topic area and

each objective was too broad and was not making use of ‘SMART’ criteria.

As well as this the idea of primary research was still being attempted during the

interim report and since then has been shown to be unachievable and unrealistic.

This research now has a specific aim and clear concise objectives. The use of

primary data has been replaced by relevant secondary data.

5.6 Researcher ReflexivityReflexivity ‘refers to our human capacity to consider ourselves in relation to our

context and vice versa’ (Longhoffer, Hoy, & Floersch, 2013). It gives a chance

for the researcher to reflect upon the research and how personal opinion and

feelings have shaped the research,

This research had emotional attachments due to the close connection and

feelings towards the topic. Having the research support a FL team and watch PL

games gave the background curiosity towards the topic.

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5.7 Other IssuesThe main issue which arose during this research was the lack of contact possible

with relevant primary sources. This had been acknowledged and countered by

the use of secondary data.

Others issue which occurred was the access to some sensitive secondary data

e.g. finance reports of football teams. Although finance reports of league and

some teams were available the lack of all information meant a case study type

research was not possible or suited for this research.

Overall the conduct of the study was clearly making use of secondary data. Changes

have been made in reflection to ensure the best results are gained from the

research. All data was collected ethically and in the premises of UoB.

55


CHAPTER SIX

FINDINGS AND DISCUSSION

56


Findings and Discussion

This chapter begins to conclude this report. The objectives will be summarised and

discussed showing evidence to what side of the argument has more support. Each

objective will be looked at individually explaining what was found, presenting the

findings and then related back to the academic and secondary sources. This is

possible due to the relevant and specific nature of the research questions.

6.1Objective One- To establish who the main media companies in the football alliance are

The objective helps to answer the aim as it establishes the stakeholders within

the alliance and therefore narrows the search field to specify which sources are

most suitable.

Throughout this research it has become very clear who the main media company

in the alliance is and has been since its launch as a football broadcaster. BskyB

has been dominant for many years within the industry, almost all academic

sources on the topic area establishes BskyB as the main broadcasting company

since the early 90s.

BT has now come to compete with BskyB broadcasting football in the UK.

Authors feel that BT has the right attributes to mount a serious challenge but also

feel it could take years to become the established force. Other companies are

vital in explaining the discrepancies of the alliance such as ITV Digital, as its

collapse caused a huge gulf in finances between the FL and PL. In the academic

sources these three companies are frequently used to explore the topic as well

as the occasional mention of other broadcasters such as ESPN or Setanta.

From the 41 academic sources which directly reference broadcasting companies

the following graph shows which company is mentioned most frequently

57


Surprisingly BT Sport is mentioned less frequently than ITV Digital. This is likely

due to the dates of these sources being slightly out of date in comparison to BT

Sports very recent ascent to dominance.

Not surprisingly BskyB is almost ever present with only 3 academic sources not

directly using BskyB. Both Rowe and Morrow, the main two academic sources

cited within this report frequently mention and use BskyB within their research.

This certainly establishes BskyB as the dominant and main media company

within the football alliance; however it cast doubt over BT Sports being an

established force yet. Secondary research found opposing results.

The research has made use of 46 secondary sources which directly refer to a

broadcasting company. Of the 46 sources, 43 of them mention BT Sports directly

as a main media company broadcasting football within the UK, more frequently

than sources mention BskyB.

Despite its apparent vital influence on the FL when it collapsed ITV Digital is

mentioned less recurrent in secondary sources than academic sources. Other

companies included; ESPN, Setanta and others which were only mentioned as

comparison to BskyB and its previous competition.

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ITV Digital obviously holds a key part within the alliance despite no longer being a

solvent company. Their frequent mentions within academic and secondary

sources show their impact on the FL has endured and a case can be made to

state it still impacts FL clubs now. However, mentioning the company in sources

alone does not define it as being the established companies in the alliance.

Other companies such as ESPN and Setanta have made little impact and are

merely used as examples of BskyB dominance; therefore, have not earned the

right to be an established media company within the alliance.

BskyB has clearly established itself; with authors citing the company such as

Rowe stating ‘BskyB have crushed all other competition’ adding to Morrow

suggesting ‘BskyB rules over football.’ The real discussion is whether BT Sports

and ITV Digital should be established as main media companies in the alliance.

As stated earlier authors such as Boyle and Haynes refer to BTs up and coming

challenge on BskyB stating that BskyB faces challenges ‘most noticeably from

BT.’ It appears that the majority of the most recent academic sources refer to BT

with many suggesting their challenge could unseat BskyB at the top by

mentioning how ‘BskyB shares falling’ as Peston (2013) discusses.

It appears to be the timescale of BTs rise which has meant academic sources

have not established their claim as a major media company in the alliance. BT’s

59


rapid growth has meant only recent academic sources would even be aware of

BT’s competition. Below shows a graph to illustrate how many secondary sources

appear to favour BT Sport in overtaking BskyB as the main media company

within the alliance.

This is backed up with the numerous mentions and promotion from secondary

sources establishing BT Sport as the second main media company within the

alliance.

ITV Digital has obviously impacted the FL and had direct impacts on the football

alliance. 19 sources, both secondary and academic, directly mention ITV Digital

all give detail on the effect the company’s collapse had on the FL and therefore

the football alliance.

Graph 4 below indicates how many of these 19 sources show ITV Digital to have

financially directly impacted the football alliance

60


Clearly sources believe that ITV Digital were instrumental in the financial

discrepancies between the FL and PL. This collapse of ITV Digital had such as

big effect as Rowe states ‘the collapse could not be foreseen’ meaning FL clubs

did not plan for the lack of income. In contrast some authors feel that ITV Digital’s

place within the alliance is as irrelevant as EPSN and Setanta which relates to

Jarvie who explains ‘Setanta, ESPN and ITV Digital have also famously tried to

take on BskyB but to no avail’. Overall it appears ITV Digital has had an impact

on the alliance due to the financial impacts its collapsed had on FL clubs.

However ITV Digital is not as established as BskyB or BT Sports as the main

media companies. It can be summarised as concluding the main media

companies are in ordered as follows, based on their impact within the alliance:

1. BskyB

2. BT Sport

3. ITV Digital

6.2Objective Two- To explore whether the financial discrepancies between Premier League and

Football League clubs has been caused by the Football Alliance

It has been clearly shown that the FL and PL have a large gulf in finances

between them. Rowe and Morrow have similar views on BskyB running football.

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Section 2.5 of this research explains why there is a discrepancy and much is to

blame on football clubs which ‘rely on broadcasting income’ explains Crowther.

FL clubs appeared to rely on ITV Digital and its income therefore a large financial

discrepancy formed when the company collapsed. The alliance appears to be the

root cause backed by bad management and the collapse of media companies.

The overall view of the report relates to authors such as Morrow who also details

how the PL introducing parachute payments have caused the rich to become

unreachable leaving a gap between the top clubs and the FL. This introduces the

question of whether the FA were doing enough to control the alliance and

stopping the discrepancies from growing.

Contradictory Szymanski argues that the PL saves clubs from bankruptcy with

support and player development. However this money gained by the PL has been

brought in by media companies and sponsors as a direct impact from the football

alliance.

Overall it was revealed that FL clubs becoming reliant on media and sponsorship

income became very costly when the income stopped and no contingency plan

was in place. This shows bad management according to Rowe and therefore

although the alliance was to blame for the initial financial discrepancies, bad

management and control caused the gap to widen quickly leaving PL clubs

impossible to keep up with. This adds to the lack of support and control the FA

maintained over the alliance and its bias toward the PL shown in many sources.

The alliance empowered the PL to take control over football in the UK and grow

away from the FL. This proves the alliance caused financial discrepancies

between the two and encouraged a further gulf.

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Graph 5 shows the level of financial difficulties some FL clubs faced with debts

up to £40m directly due to media companies within the alliance.

This further backed by the losses expected for the FL clubs. As stated earlier in

the report most clubs had budgeted for at least two seasons with ITV Digital

income still expected. The graph below indicates the expected losses for the

lower league divisions.

Figure 6 presented earlier in this report shows how 50% of the PL clubs income

is from broadcasting and as figure 5 shows an average income of over £40m

from broadcasting rights is given to PL clubs. With an average income therefore

of over £80m PL clubs are in a very healthy financial position which compares to

an average £5m per club for League One clubs.

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Graph 7 shows that from the 43 academic sources used, the alliance is directly

linked to causing a discrepancy in 30 of them with only 13 supporting the alliance

in helping FL clubs.

As shown in table 1 Morrow feels that the alliance has taken over control of

football and the FA has failed to maintain any control. Rowe feels the FA are

attempting to maintain this control but the sheer force of the media and sponsors

have left the FA unable to remain in charge despite their best efforts. Either way it

has become obvious that the alliance within football has had detrimental effect in

keeping the FL and PL clubs closer financially.

Overall the overwhelming evidence blames the football alliance for causing

financial discrepancies between FL clubs and PL clubs; whether this was directly

caused by companies in the alliance or indirectly by encouraging PL supremacy

and encouraging bad management of FL clubs which become reliant on

broadcasting income.

64


6.3Objective Three- To analyse whether the FA are doing enough to help Football League clubs

gain the benefits of the Football Alliance

The FA was identified as the leading stakeholders in controlling the football

section of the alliance. Their involvement within all decisions of broadcasting,

sponsorship and regulations can be traced making their impact very visual. The

key points of the FA involvement include; introducing regulations e.g. financial fair

play, maintaining competitions for FL clubs e.g. FA cup and Football League

Trophy, inability to control parachute payments and whether there is biasness

towards the PL.

Morrow feels the FA have shown their ‘feebleness’ in being over thrown by media

as leaders in the alliance with Sturgeon agreeing saying the FA signed away all

rights to the media. Clearly authors feel the FA did not act quickly enough to

maintain control when companies such as BskyB first began to take broadcasting

rights, focussing too much on the extra revenue. Even Rowe agrees with Morrow

in the opinion the media took control with the rapid rise in rule which the FA could

not handle.

Graph 8 shows the percentage of the 43 academic sources used which indicate

the FA involvement. 31 out of the 43 sources agree with Rowe and Morrow that

the FA did not act well enough to support FL clubs within the alliance.

65


This shows that clearly the FA did not do enough to control the alliance. However

a case can be made that the FA does attempt to support FL clubs.

With the introduction of financial fair play regulations the FA open discussion that

they have support for FL clubs and are trying to decrease the size of the gulf

between the leagues. Sale (2013) backs the FA in this decision with his argument

that this regulation spreads the wealth across all of football. Much secondary data

was used to define and explain the benefits and opinions of the new regulation.

All of this data agrees that financial caps brought in by the FA will aid decrease

the discrepancies showing support for the FA helping FL clubs gain the benefits

of the alliance.

As well as this the FA have ensured that competition such as the FA cup gives

FL clubs a chance to bring in extra revenue and compete with the best clubs,

Rowe feels this shows the FA cup have not commercialised football and support

the lower leagues. The introduction of the Football League Trophy shows the FA

have allowed FL clubs at their own chance to create a working alliance beneficial

only to FL clubs.

However one point that relates to man authors such as Rowe and Morrow

appears to be a very anti-FA is the lack of ability to control the parachute

payments. Morrow feels the FA have given into pressure from major teams, a

view which has similarity to Storey who says parachute payments lead to the FL

clubs being left behind. 14 sources used in this report directly link parachute

payments to the alliance

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These sources were taken from reliable data such as BBC newspaper articles.

However this does not make the writing 100% genuine. Although the sources are

reliable the data within could be bias opinions and could alter the meaning of

them, hence the critical analysis of the sources before use.

Overall the majority of evidence argues the FA has not done enough to support

FL clubs. The FA has acted slowly and weakly to counter the alliance power

leaving FL clubs behind the PL competition. The actions undertaken by the FA

have not been effective enough to counter the alliance stronghold. Also

regulations which effect PL clubs (financial fair play) also effect FL clubs meaning

they do not benefit from the alliance.

67


CHAPTER SEVEN

CONCLUSION

68


Conclusion

7.1 Summary of Research FindingsOverall the findings appear to indicate that the alliance has taken control over

football. The FA has failed in their attempt to maintain control over the alliance.

Three main media companies were revealed with BskyB the clear dominate

force. Football clubs relied too heavily on media and sponsorship income and

therefore were left in real financial instability when ITV Digital collapsed.

The FA has been seen to attempt to narrow the gulf between the FL and PL but

their actions are deemed too weak and too late. The alliance strongly favours PL

clubs in the vast amounts of money directed to PL clubs in comparison to the FL

clubs.

Clearly Rowe and Morrow had many disagreements on the matters as shown in

table 4. Rowe appears to be more supportive of the FA and blames

mismanagement of the discrepancies. Whilst Morrow is critical towards the FA,

blaming them for the gulf, which is a view shared by the majority of authors.

7.2 Relationship to Background LiteratureThere has been much literature relating this topic, albeit not the exact same

research discussed within this project. Previous research indicated that media

and sponsors have directly impacted sport with the main argument being whether

the relationship had been mutually beneficial or if the shares in the alliance had

become weighted towards media and sponsors due to finical superiority.

The findings in this project had a similar outcome; with the alliance becoming

dominated by media companies and sponsors leaving the sport behind. Also

much research found the alliance takeover by the media to be inevitable due to

the perfect fit sport and television has; another view which was found in this

project.

With no article or sources specifically devoted to this topic the answer to this

report cannot be reflected directly. However as the answer is based purely on the

69


research findings and on no opinions from the researcher it can be argued all

sources agree with the outcome.

7.3 Contribution to KnowledgeHaving made use of a literature review the contribution of knowledge is clear to

see. Academic research played a key part within the research with more than 40

academic sources being cited. The two foremost sources which helped shape

the topic came from authors Rowe and Morrow; whom appeared to disagree on

many areas researched. Also nearly 50 sources were taken from secondary data

showing the numerous sources required to contribute effectively in this report.

This report now contributes it knowledge within the research topic. As stated

earlier this topic can be justified by the lack of identical research meaning this

project can be used to stop the negative impacts spreading to other sports and

ensuring careful management over the sport alliance is maintained.

7.4 Research Aim and Objectives Re-visitedThis report set out to answer one aim. In doing this the project formed objectives

and research questions to shape and direct the research.

Aim: To explore whether the financial impacts of the Football-Media-Sponsorship

‘Alliance’ in England only benefit Premier League clubs

Objectives:

1. To establish who the main media companies in the football alliance are

2. To explore whether the financial discrepancies between Premier League

and Football League clubs has been caused by the Football Alliance

3. To analyse whether the FA are doing enough to help Football League clubs

gain the benefits of the Football Alliance

The objectives were summarised and indicated earlier which helped to answer the

aim of the project.

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From the objectives it has been made clear that the positive financial impacts of the Football-Media-Sponsorship Alliance in England do only benefit PL clubs and have caused a gulf between the Premier League and Football

League

7.5 Implications of StudyThis study will help future up and coming sports to understand the importance of

maintain control over the alliance and careful management of clubs not becoming

reliant on predicted broadcasting and sponsorship income.

It also indicates that the FA needs to act strongly and quickly in future to regain

standing within the alliance after highlighting the inability to act previously.

7.6 Directions for Future Research and RecommendationsFurther research in this topic should be undertaken to show how the alliance has

begun to impact other sports as well as ensuring clubs are no longer solely

reliant on the alliance income. Further research will also help explain how the

alliance power has swung in favour of the media and sponsor maybe due to

improving technology and explore all other factors. Finally more research could

show how players and individual clubs are impacted by the alliance if sufficient

contact with relevant individuals is possible.

Word Count: 10,461

71


CHAPTER EIGHT

REFERENCES

72


References

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Balding, C. (2012, March 8). Sport and the British: Globalisation (episode 29 of 30). (BBC, Interviewer)

BBC . (2013, June 19). BT complains to Ofcom about Sky Sports TV supply. Retrieved January 26, 2014, from BBC Sport - Football: http://www.bbc.co.uk/news/business-22970723

BBC News. (2009, February 6). BSkyB snatches Setanta TV rights. Retrieved January 28, 2014, from BBC News: http://news.bbc.co.uk/1/hi/business/7875478.stm

BBC News. (2013, November 19). Champions League: BT Sport wins £897m football rights deal. Retrieved March 19, 2014, from BBC: http://www.bbc.co.uk/sport/0/football/24879138

BBC news. (2009, june 23). Setanta goes into administration. Retrieved Feburary 12, 2014, from BBC News: http://news.bbc.co.uk/1/hi/business/8115360.stm

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CHAPTER NINE

APPENDICES

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Appendix

9.1Appendix 1: Several pages of Ofcom report detailing the discrepancies between PL and FL clubs (Ofcom, 2007)

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9.2Appendix 2: Gary Lineker contact page

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9.3Appendix 3 – Ethical Approval

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