Just a reminder: The English FA run the national side and the FA cup. The FA Premier League, on the other hand, are a limited company, and its only concern is to secure the vast TV revenue for the Premier League only. No other English leagues are allowed any share of the TV revenue.
Before the TV rights were bought by BSkyB in 1992, TV revenue was shared between all the league clubs. The 1st division clubs received 50% of the revenue, the 2nd division 25%, and the 3rd and 4th received 25% that was shared between the clubs in those divisions.
In 92, the 1st division clubs decided that they wanted the TV revenue in its entirety. They lobbied the FA, eventually gaining their support over the proposal. The FA gave the 1st division clubs the permission to deny clubs outside of the Premier League any entitlement to the money that Sky brought to the newly formed Premier League.
Once the 1st division clubs secured their fortune – thanks to Sky – they formed their own authoritative organisation in opposition to the FA. This organisation served to protect their financial interests without any intervention from the old cronies in the English FA.
The primary motivation for forming the FA Premier League, an organisation outside the financial jurisdiction of the English FA, was to prohibit the clubs that had been excluded from any entitlement to the riches furnished by BSkyB from renegotiating the distribution of TV revenue with the English FA at a later date. The opportunity for smaller clubs to acquire any of the money that they once received was now finished.
It’s an interesting program about how the FA allowed the Premier League clubs to financially screw their lower brethren. Teams in lower divisions had a sporting chance back then. If they had a good manager and used their share of the TV revenue money wisely they could compete with bigger clubs.
So much for the English FA sticking up for the rights of their smaller members!
http://www.bbc.co.uk/radio4/whatsthepointof/pip/ues9d/
Cheers, and happy listening.
Last edited by The Bulk on Wed Mar 12, 2008 11:52 am; edited 1 time in total (Reason for editing : Something wasn't clear)