Premier League Table

Premier League Table 1

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In the 1980s, major English clubs had begun to transform into business ventures, applying commercial principles to club administration to maximise revenue. Martin Edwards of Manchester United, Irving Scholar of Tottenham Hotspur, and David Dein of Arsenal were among the leaders in this transformation. The commercial imperative led to the top clubs seeking to increase their power and revenue; the clubs in Division One threatened to break away from the Football League, and in so doing they managed to increase their voting power and gain more favourable financial arrangement, taking a 50% share of all television and sponsorship income in 1986. They demanded that television companies should pay more for their coverage of football matches, and revenue from television grew in importance. The Football League received £6. 3 million for a two-year agreement in 1986, but by 1988, in a deal agreed with ITV, the price rose to £44 million over four years with the leading clubs taking 75% of the cash. According to Scholar who was involved in the negotiations of television deals, each of the First Division clubs received only around £25,000 per year from television rights before 1986, this increased to around £50,000 in the 1986 negotiation, then to £600,000 in 1988. The 1988 negotiations were conducted under the threat of ten clubs leaving to form a “super league”, but they were eventually persuaded to stay with the top clubs taking the lion’s share of the deal. The negotiations also convinced the bigger clubs that in order to receive enough votes, they needed to take the whole of First Division with them instead of a smaller “super league”. By the beginning of the 1990s, the big clubs again considered breaking away, especially now that they had to fund the cost of stadium upgrade as proposed by the Taylor Report.

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