document13

12
- 13 - 1 - Can you introduce yourself, your position and your assigned tasks in the channel ? I am the investment Administrator . 2 - What is the importance of selling the football matches broadcasting rights for the club ? First of all, let me tell you that I am hooked in sports in and outside the Saudi Arabia, and I have a lot of investments abroad. I have a quality stake of 50$ in Sheffield United Club in England. Besides, I was so eager to possess my own club and I am really acquainted with the budgets of many different kinds of sports. T.V broadcasting is always considered the first source of income though it was broken in the Saudi Arabia for a long time because the Saudi T.V takes it for pittance. Therefore, my special view of the T.V broadcasting came as a result of the less than 10% of the income while it has to be 30-40% . 3 - Do you think that the method of selling the broadcasting rights is effective currently ? Actually, I think this question must be asked from the angle of " who owns those rights?". Clubs are owned by

Upload: sarah-sobhi

Post on 13-Apr-2017

25 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Document13

-13- 1 -Can you introduce yourself, your position and your assigned tasks in the

channel?

I am the investment Administrator.

2 -What is the importance of selling the football matches broadcasting rights for the club?

First of all, let me tell you that I am hooked in sports in and outside the Saudi Arabia, and I have a lot of investments abroad. I have a quality stake of 50$ in Sheffield United Club in England. Besides, I was so eager to possess my own club and I am really acquainted with the budgets of many different kinds of sports. T.V broadcasting is always considered the first source of income though it was broken in the Saudi Arabia for a long time because the Saudi T.V takes it for pittance. Therefore, my special view of the T.V broadcasting came as a result of the less than

10% of the income while it has to be 30-40% .

3 -Do you think that the method of selling the broadcasting rights is effective currently?

Actually, I think this question must be asked from the angle of " who owns those rights?". Clubs are owned by the state which I think it does not have " achieving a good income" as one of its priorities. I see that the priority of the country is to broadcast the matches for the citizens for free and this is for different reasons. Firstly, because sport is considered as one of the rare entertainment means here in the Saudi Arabia as well as the only and first means. Secondly, because females could not attend matches in stadiums. If the match is not broadcasted, half of the community will not see it. Thirdly, the state does not have a sense of that corporal suffering of the clubs. For example, the decision-maker, when he looks at it from the point of view of the first option and give it the rights in the lowest or least payments, this would bring him a lot of problems from the clubs. Previously, these payments were 150 million SR, in a net of 100 SR and definitely this is a little price, does not cover the real costs of the broadcasting. I think if either of the two options happens i.e. if we get a privatization in the clubs, so on the prices of the rights begin to increase till it reaches to its supposed price; the decision- maker will look at the things the citizens like, to watch matches for free, which could be achieved simultaneously without preventing the clubs from the broadcasting rights.Actually, I

forsee that we will continue selling the Saudi broadcasting rights in cheap .

Page 2: Document13

4 -There are two ways for the selling of the broadcasting rights in the world i.e. a collective sale that fulfilled by the association and the individual sale via the clubs. Would you tell us your opinion in both methods, and which one you prefer and

why?

I think anyone who have a vision towards sports in general, he/she would arrive to the conclusion that the collective sale is the best way. By experiment, it has proved many advantages i.e if you gather each club separately with the collective sale which is always better, there might be a specific club sells alone as the mass- club, it will get high income, but at the same time it will harm other clubs. Therefore, I see the collective sale is always the best. The second and more important thing is that sport is based on competition. When competition is strong, the following- up of sports will increase. For instance, the difference between the Spanish and the English league is that even those who like the Spanish league watch the Real Madrid – Barcia match, Real Madrid- Atletico. The Spanish matches are unavailable because of the difference in there levels and points is high. However, the English league which contains more competition and fair methods in distributing incomes, which leads for more followers, it`s income will get higher. Therefore, I define the best sport regardless my own point of view, but in terms of statistics. Therefore, the most successful league in terms of incomes and financial management is NFL. When it begin and Bit Rozi came, I think the American football was the third after baseball and basketball. Moreover, all clubs were owned for individuals not for the state. He saw that the most beneficial thing for the league that increases its followers and attract them is competition. Therefore, he began sharing in incomes for example New Gayenz team, which is the biggest city in the world, its income maybe like Green Barkers team, which does not contain more than 200 elements. This led to the increase in the popularity of the NFL due to having one or two professionals just like Real Madrid and the Egyptian Ahli and Zamalik. You always would see the competition, so all matches are important. When we studied the theme of privatization of the club, we proposed to the high commercial league and recommended that the clubs have to sell their rights using the collective sale, and distribute the incomes as 50% fairly equally to the clubs – 50% based on the levels in

the leagues and their order .

5 -You have mentioned that America in its football uses the income-sharing method, the same way that was implemented in Europe except Spain. However, I

see the American football totally distinguished from the European?

What do you mean?

Page 3: Document13

6 -It sells the league to the free channels, and distributes the incomes on the clubs fairly, right?

First, they don’t sell all rights to the free T.V, they have some packages, the main one is sold to the free channels. However, it sells for (ESBN) – not a free channel, some are sold for (FM neoteric) which is not free also. They have some matches that are sold for the free T.V, and others are sold on cable. Regarding the distributing of the incomes, they do that fairly; take the English league as an example, it distributes 50%-30%-20% in terms of the order and of broadcasting the matches. Our method here in the Saudi Arabia that 50% equally, and 50% regarding there arrangement at

the end of each season again because most matches are often transmitted .

7 -Is there any contract between the clubs and the Saudi Union asks the latter to sell the broadcasting rights instead of it?

You know the situation here in the Saudi Arabia is totally different, the clubs are owned by the state and the main reason of that is the last period, clubs began to be in a stronger state mainly because of the Asian Union. Ibn Hamam had a vital role in this because all what we do currently in the Saudi football is imposed on us from the AFC including the formation of the pro league association. Besides, the clubs must have financial statements, and thankfully, we have lately a noticeable development. The state just wants to broadcast matches without adding something new. If we have creativity in the Saudi Unions, the football Union or at the association, we could eliminate the state`s fears because all what the state want is to increase our income

more and more .

8 -Do you think that the clubs would ask for the increase in their incomes as they requested before 2 to 3 months regarding the distribution of the incomes, or they could withdraw from the league? This exactly would happen for the broadcasting rights if we lack a distinct clear contract between the Union and the clubs, so is it possible that the clubs would become more courageous and ask for their legal

rights?

From my own point of view, the possibility of the success of the privatization of the Saudi clubs is about 50% and if had a place, it would be the direct forward path to achieve that. Whatever the ability of the clubs to press is, it is limited because as I said before, the state owns the clubs. Therefore, it`s difficult to say that the clubs are prevented from broadcasting the matches; there might be a decision in the future

Page 4: Document13

from an official side, so clubs can do nothing but to obey. I think that privatization is not a meant goal because we have three main problems in the Saudi sports: the first problem is that our sport is mainly based on volunteers, so the Saudi clubs have to bring qualified professionals either Saudi or foreign. However, this thing is unavailable because of the temporary managements and the vague sources of incomes. The second problem is that the clubs have consistent sources of income that we could rely on. The third and most important problem is the development in the level of the Saudi sport; I expect that anyone watches football in the latest 20 years in the Saudi Arabia sees that we are dwellers and had not achieved any development.

9 -Is there any contract between the clubs and the Saudi Union regarding the distribution of the incomes and their mechanism?

We. In the privatization team, have presented to Prince Nawaf Bin Faisall before 2 years that the incomes have to be distributed as 50% fairly equally and 50% according to the order. Besides, we clarified their advantages; firstly, each match in the Saudi league has its own sense even the loser club or the safe club and the matches that continue to the end of the league has their importance. This is because the gained level the club at the end of the match affects the total income, at the end of the season. What happened in the first Union meeting presented the distribution of the income that 100% are given for the club and introducing the vote and what happens in all around the world. Actually, not all decisions are put for voting except if the league consists of 3 rich clubs and the rest are 12 normal clubs. Usually, the voting is against the rich clubs by the majority of the votes. NFL has solved the problem i.e. any main decision cant made except by the existing of 70% of the votes. Most importantly, I expect that the problem was because of a mistake committed by the Union which voted for something trivial, that we all wish to

perform next year .

10-Who is responsible for the mechanism of distributing incomes?

It is known that the state owns the clubs; if we sell them without inserting a good income-source system, the only benefitted from this process is the big national clubs. For example, Al.Hilal Club would say "why shall I share the income of the T.V broadcasting in collocation with a non-national club". Therefore, it`s unacceptable to follow a system that isn’t suitable for the Saudi football. We must put a fair distribution system for the incomes because it gives all clubs the opportunity of competition as well as a gradual income can be gained for big clubs. 50% of the incomes are given fairly for all clubs and 50% are given in terms of the order which

Page 5: Document13

gives the clubs the opportunity to be in the advanced stages. For example, Al.Fateh Club took the first level last year; therefore, they got the highest income among all

clubs .

11-What do you think about the broadcasting rights that combines between both methods of the sale, individual and collective, for the championship cup? Do you think that this would help the clubs in competing in the championship competitions, specially if they reached for an advanced level so that their incomes

increase?

What we have done covers this issue i.e championship cup is sold collectively, but the spending is distributed in terms of the matches. For instance, if a team wins, they are given a range of the income for each match. Regarding what is said that the team sells for itself, I see it a critical taboo. Suppose that a reckless manager gained 500,000 SR and sold the match with 50,000 SR, he will cause a discourage for all other clubs. The Saudi T.V will ask " why to buy all the matches of the league. I want to buy just Al.Ahli and Al.Hilal matches." Mostly, if they take the matches of those teams, he will not care about other clubs of non-mass. Sheffield United was qualified for the quarterfinals in the England Cup and we had a chance to broadcast the match via T.V, so it was the small clubs to broadcast it to gain a good income.

12-What is the implemented method in selling the broadcasting rights in the Saudi Arabia?

In the Saudi Arabia, the broadcasting rights are sold as a one package according to the championships, and this is a false way. As I said before, if there is not a privatization for the clubs plus providing them with professional experts and negotiators, we will sit in the same previous episode.

13-What is the mechanism of distributing the incomes of broadcasting rights in the Saudi Arabia?

Currently, 50% equally, and 50% in terms of the order, but 30% of the cuttings from the total income goes to the Saudi Union and the first and the second class, but rates

are absent from mind now .

Page 6: Document13

14-Do you expect that the current mechanism is efficient for the club?

I don’t expect that; it could be more far than this because it does not distinguish a club from the others, so that the club could plan and pay salaries for the players .

15-In your opinion, what is the best way to distribute incomes?

Actually, I see the current method as the best because if we deal with it equally, we will discourage the competition among clubs. When a team wins with a championship before the end, there would be no suspense to win the other tours. However, if each team improves its performance, they definitely will gain more money and so on they will have a reinforcement to achieve more, and possibly suffer from the manipulations of the results.

16-Is it possible to have more than one way to distribute the incomes that we could choose what fits our circumstances and our clubs?

We did so, besides we studied all the international systems and brought a financial advisor who proposed us all systems. We chose the 50%-50% method, this is surely was after an accurate scanning to find out that the best experiments in the world are

NFL and the English League .

17-I do agree with you that the best system is the English, but if we take the English system as an example to apply the 50%-50% method, what do you think?

From the experiments in the Saudi Arabia, I see that audience don’t come to the stadiums specially if the match is broadcasted on T.V. and as you know, our audience is extremely luxurious, they prefer to watch matches at homes, on T.V. and to be honest, this is our society-culture; noting that the ticket prices are so cheap comparable with the other Arab countries. I think that the most important problem that faces us in the Saudi sports is not the T.V broadcasting, but the courts attendance in the stadiums. The privatization committee cares mostly how to create solutions to increase the rate of the attendance in the stadiums.

Page 7: Document13

18-Is there any item in the contract that demonstrates the right of the clubs in the re-broadcasting as recorded matches after 24 hours?

The eligibility of re-broadcasting the match after 48 hours is one of the vital items the privatization committee cared about. They did that in order to help the clubs to

open special channels for them which would increase their incomes also .

19-What do you think about the way of selling the broadcasting right through the new technology, is it profitable to increase the incomes?

I don’t consider it new according to America, but to us. We have a lot of students who study in the USA and Europe, so it`s a real chance to see the matches via the

new technology and internet .

20-What are the helping factors that would make the new technology a distinct way for the broadcasting rights sale?

Firstly, we have to sell the internet rights alone separately from the T.V and the radio rights. There are a lot of factors, but we have to divide them into packages.

21-What are the obstacles that hinder the implementation of the new technology in the broadcasting right sale?

Our only obstacle in the Saudi Arabia is that they don’t look at what is achieved abroad except after 10 years .

22-Do you think that the audience will accept watching the matches via the new technology?

I ,myself, if I traveled, and I want to watch the match, I would pay to get the internet services and enjoy watching the match .

23-We have reached to the end, would you like to add anything?

No, thank you .