Amazon is set to expand its Premier League streaming coverage with a major new deal that will hugely benefit Liverpool in the future.
Liverpool could benefit financially from Amazon’s plans to expand its Premier League broadcast coverage.
The streaming giant is reportedly considering challenging the dominant presence of Sky Sports and TNT Sports in order to drive up the price of the next round of broadcast rights.
This development could have a significant impact on Liverpool and their major Premier League payments.
The current broadcast rights cycle, which ends in 2025, is worth almost $6.1 billion (£5 billion/€5.7 billion) over three years.
Despite the uncertainty caused by the pandemic, Sky Sports, BT Sport and Amazon have agreed to transfer their rights for the same value, avoiding a possible reduction in value.
However, there is confidence that the next cycle could exceed $6.7 billion (£5.5 billion/€6.3 billion), and perhaps even reach $7.4 billion (£6 billion). pounds/€6.9 billion).
An aggressive bid from Amazon would help achieve this and have a direct impact on Liverpool’s financial results. READ MORE: Jurgen Klopp has seven reasons why something he ‘hates’ could now be ideal for Liverpool
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According to the Telegraph, Amazon and DAZN are expected to bid for one of five new broadcast rights packages. These packs vary in the number of games, from 42 to 65 games.
Currently, TNT broadcasts 52 live games per season, including 32 kickoff games on Saturdays at 12.30pm, while Amazon broadcasts 20 games per season via its Prime Video platform.
The current short cycle of broadcast rights in the Premier League contrasts with long-term contracts in markets such as North America.
Broadcasting contracts with a term of up to ten years have brought enormous added value and offered investors greater security.
This stability has significantly increased the market valuation of major teams in various sports leagues.
A longer rights cycle in the Premier League would likely attract more investment and increase club revenues.
In terms of revenue distribution, each club currently receives $39m (£31.8m/€36.5m) from domestic television rights, with additional royalties paid for each live appearance.
Performance bonuses are also paid based on a club’s final league ranking, which comes from domestic and international rights revenue.
Liverpool’s performance bonus for the 2022/23 season, when they finished fifth in the Premier League and missed out on a Champions League place, stood at just over $33m (£27m / 31 million euros).
An improved broadcast deal from 2025, which appears more likely due to increased interest from streaming platforms such as Amazon and DAZN, would give Liverpool an even greater financial reward for their on-field success.
The continued growth of Premier League broadcast rights, both domestically and internationally, has contributed significantly to Liverpool’s increased value as a club.
This increase in valuation was reflected in Dynasty Equity’s minority stake negotiations in September. Overall, Liverpool will benefit from Amazon’s possible expansion of Premier League broadcasts.
A successful bid from Amazon would increase the value of broadcast rights, leading to higher central payments for Liverpool and other clubs.
The long-term stability offered by an expanded rights cycle would attract more investment and further improve the financial prospects of Premier League teams.
