The former sports minister Richard Caborn has called on the Premier League to establish a new formula for redistributing more of its television income to the grassroots following the election.
Caborn, who helped negotiate a deal with the European Commission in 2005 that maintained the Premier League’s collective selling agreement in return for promises on grassroots funding, said in future the top flight should redistribute 10% of its television income from both domestic and overseas rights to the grassroots.
The Premier League has always argued that a commitment it made in 2005 should only apply to its domestic TV deal, which will top £5bn for the first time for the three seasons from 2016-17.
Caborn does not dispute that but claims that the government’s intervention in the face of an EC threat to its auction arrangements was delivered in exchange for a moral commitment to grassroots sport. “I think there is a case where this needs to be revisited and there needs to be a sensible discussion. You might want a new agreement along the lines of the Caborn formula. They should take that as the basis for discussion,” said Caborn, who was sports minister until 2007.
“There should be a new agreement put in place based on the principles agreed in 2005 but including the international revenue. It would be good for the Premier League.” He also suggested that a new independent body should be considered to decide how the money should be spent.
Letters exchanged between Caborn and the Premier League chief executive Richard Scudamore confirm a formula under which the Premier League’s net income to its 20 clubs should be redistributed – 6% up to £1.2bn, 7.5% up to £1.4bn and 10% over that figure. The Premier League argues that it has historically delivered on the bargain in any case.
The shadow sports minister Clive Efford has become increasingly trenchant in his criticism of the Premier League, recently saying it was a “disgrace” that more money had not been invested in facilities and coaching during the boom years.
This week he said: “The Commission granted special permission to the Premier League to package up their TV deals so that the wider footballing community would benefit, including fans. If the Premier League doesn’t agree to invest more money in the grassroots of the game I will legislate to make sure that they do.”
The Premier League argues that it already redistributes more than £116m per season outside of the top flight, excluding parachute payments, which is far more than comparable leagues and other sports. It has pledged to redistribute at least £1bn outside of the top flight over the course of the next TV deal, likely to raise at least £8bn once overseas sales are taken into account.
