Dispute looms between PL and EFL over data rights revenue

Sudhanshu Ranjan November 22, 2024

SiGMA news

Dispute looms between PL and EFL over data rights revenue

A brewing storm over data rights is set to reshape English football as the Premier League (PL) and the English Football League (EFL) find themselves at odds. According to reports, Premier League clubs are lobbying for a larger share of the lucrative data rights market, citing their immense global popularity and disproportionate media attention.

Disproportionate media interest

At the heart of this dispute lies FootballDataCo, the official holder of football data rights in England. This organisation ensures that match data from leagues like the Premier League and EFL is collected, processed, and distributed efficiently. Partnering with Genius Sports, FDC supplies data to media companies and betting operators, enabling real-time insights that enhance fan experiences and drive the booming sports betting industry.

The Premier League is undeniably the crown jewel of English football, boasting unmatched global viewership and fan loyalty. Clubs argue that this immense attention translates to greater betting and media reliance on their data, justifying their demand for a larger share.

Narek Harutyunyan, CEO of FeedConstruct, a sports betting feed provider, said, “In an era where fan engagement and personalised experiences are key, having access to high-quality, real-time and fast data allows organisations to connect with audiences in deeper and more meaningful ways.”

In recent years, clubs have faced mounting pressure to comply with Profit and Sustainability Rules. Cases like Everton and Nottingham Forest, which saw points deductions for overspending, highlight the need for top-tier clubs to maximise revenue streams, including data rights. The EFL is home to some of England’s most storied teams, such as Sunderland and Leeds United. Their significant fanbases contribute to substantial betting and media interest, which the EFL believes should secure their fair share of data rights revenue.

In 2019, football overtook horse racing as the UK’s most bet-on sport, cementing its place as a betting giant. Data fuels this industry, enabling precise odds and real-time updates, making it a cornerstone of the football economy.

Possible outcomes of dispute

The ongoing debate could result in several outcomes: the Premier League securing a larger share of revenue, the EFL retaining its current share, or a complete restructuring of the data rights framework. The dispute could escalate into legal battles over contracts and revenue sharing. Moreover, ethical concerns about the monetisation of player and team data add another layer of complexity. Other sports leagues, such as the NBA and NFL, have faced similar conflicts over data rights. These cases demonstrate the importance of compromise and highlight potential pathways for resolution.

If unresolved, the dispute could exacerbate financial disparities between Premier League and EFL clubs. While top-tier teams might thrive with increased data revenue, lower-tier clubs risk losing a vital income stream. Collaboration is key to avoiding a damaging stalemate. Negotiation, coupled with third-party mediation, could help both parties reach a mutually beneficial agreement.