Finance guru: Liverpool need foreign investment after £3.2bn impairment charge
Liverpool and their Premier League peers may have to rely on foreign investment for growth in broadcast rights as Sky appear to have stagnated.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the financial issue currently being endured by Comcast, the media conglomerate which owns Sky.
As relayed by Inside World Football last Sunday (30 October), Comcast has posted third-quarter losses for 2022 of £3.21billion.
The United States-based company chalks up £7.67bn to impairment charges related to Sky who are the Premier League’s primary broadcaster in the UK.
Plumley assessed how the news will affect individual clubs if Sky are unable to pay as much for the TV rights in future negotiations.
“An impairment charge is when you’ve got something where the value you have got it as is worth less in the market,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
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“The same thing happens with players. You can value a player lower in terms of selling him on that when you’ve got him on the books.
“This is interesting because it suggests that they are predicting the future value of the rights is going to reduce. That stacks up with what has happened with the TV deal from 2022 to 2025. It was allowed to roll over through the pandemic.
“It did dip in 2019, going from £1.5bn to £1.4bn per year. That is Sky having a large majority of that with BT playing second fiddle.
“So there is an issue for Sky in that we know there has been a reduction in their subscriber numbers and that there is more competition in the market from OTT providers now. Their position as number one is under threat.
“But the international rights have actually gone higher, which is where the clubs are looking to drive growth. That would offset some of the damage for the clubs.
“For Sky, this is probably worse than for the clubs. But yes, there might be some issues to factor in for Sky when the next rights cycle comes around.“