Premier League clubs are lobbying for a bigger share of football’s increasingly lucrative data deal in a move that is likely to further inflame tensions with the English Football League.
Under the terms of the existing contract, the Premier League and EFL receive an equal split of money through the collective sale of their data rights, bringing in around £35m a year to each league. The Scottish Professional Football League receives a significantly smaller share of the revenue in a deal worth a few million pounds to clubs north of the border.
The Premier League and EFL are equal shareholders in the company that manages the collection and sale of their data, Football DataCo.
The commercial value of the deal has historically been relatively small but has grown significantly in recent years due to the huge increase in the volume of betting on football, alongside a far greater use of data by broadcasters. A number of Premier League clubs are understood to be arguing that as they have been the main drivers of this growth, they should receive a bigger share.
The financial distribution has previously been altered in the Premier League’s favour, as before the data revolution Football DataCo’s main role was managing the distribution of results and fixture lists. During this period the EFL received about 50% of the pot to reflect the fact that their competitions featured more matches.
Football DataCo agreed a new four-year contract this year with Genius Sports as their official data provider in a deal that starts next season. Under the terms of the deal Genius will capture and distribute live data – such as expected goals and shots on target – for more than 4,000 games a season, which is then sold to hundreds of betting companies and broadcasters all over the world.
Several Premier League clubs are pushing for a greater share of the profits when the new deal comes into operation next season. The Premier League are duty bound to explore such requests from their clubs, although any change in the distribution arrangements would have to be agreed by the EFL and SPFL.
The Premier League declined to comment, but sources said that all parties were happy with the current performance and future trajectory of the DataCo deal. The emergence of the DataCo matter comes at a time when the Premier League’s relationship with the EFL is already strained. The biggest faultline is over their differences over the powers that should be given to the new Independent Football Regulator, with a particular tension over whether parachute payments should be within its remit.
In addition, the longstanding negotiations over a new financial settlement between the two organisations, the “New Deal for Football”, have yet to be resolved.
Despite the wealth of their clubs, the Premier League’s own central funds are under pressure due to a huge rise in their legal fees caused by cost of the profitability and sustainability rules (PSR) and associated party transactions (APT) cases brought against Manchester City, Everton and Nottingham Forest.
The Premier League’s annual legal bill has grown almost tenfold to around £50m over the past two years. Gaining more from data would help offset some of this increase.
The Premier League’s own cohesion is also being severely tested before a club meeting on Friday to discuss potential changes to the competition’s APT regulations. The Premier League want clubs to vote on proposed amendments to the rules, but City have demanded that the process is paused and have received support from Aston Villa, who want the vote to be called off.
The Premier League will only hold a ballot if they are confident of getting the two-thirds majority required for the new rules to be introduced.
