Thursday, January 31, 2013

TV Parity in the EPL

Spain is notorious for having two teams dominate in television earnings while parity prevails in English television earnings but do these uneven earnings really affect parity of play on the field?

Even though the top teams in Spain earn the lions share of television money, the quality of teams, from top to bottom, are about the same in both the English and Spanish leagues.  In other words, disparities in Spanish team performances is a myth - they just earn more than their English counterparts.

In 2012, Wolves were at the bottom of the EPL with $63 million in television revenue, about 2/3 of the wealthiest earner.  Last year, Racing earned a mere $16 million, or 1/4 of their English counterparts.

At the top of the table, Real Madrid and Barcelona made $177 million, almost double the EPL leading earners, Manchester City.

While the distribution of money earnings in Spain (as measured by the GINI coefficient) is almost 6 times more unequal than in England, the distribution of points earned over last season is almost identical!

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