Tuesday, November 12, 2013

The Football Tax

Is it a coincidence that both Virgin Media and BT have announced inflation busting hikes in their broadband charges of over 6% each in the very same week that BT paid an insane amount of money for some football rights ?

I think not.

Essentially, what is happening is that most broadband users, whether they follow the sport or not, is being asked to put a massive amount of money into the pay packets of a bunch of already massively over-paid sportsmen. After all, history has shown that very little of the money actually stays with the clubs that ostensibly benefit from the deals - almost all of it immediately goes out in massive pay packet hikes for some guys who get paid to take part in a game that most people play for fun. the average weekly pay packet of a top flight footballer has gone from £500 in 1983 to over £25,000 now.

And guess who's paying.

BT's championship deal is equivalent to £10 a year for every home in the UK. it's called 'buying market share'. It's also become a tax on your broadband bill.