New TV Deal Poses Challenges for Smaller Allsvenskan Clubs

The new TV deal for the top Swedish football league can hit the country's smaller clubs hard. And even bigger problems may follow if they don't keep up with the development through large player sales. Then the gap will become very large, says Carlos Esterling, responsible for Sports Business Services at EY in Sweden.

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New TV Deal Poses Challenges for Smaller Allsvenskan Clubs
Photo: Mikael Fritzon/TT

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From 2026, a new TV agreement for men's Allsvenskan football applies when TV4 takes over the rights from Max.

The value of the six-year agreement is not publicly disclosed, but information suggests that it will not be an increase from the current agreement – which in 2024 totaled revenue of 387 million kronor according to a report from the auditing firm EY.

There is also uncertainty about how the money will be distributed among the clubs. Currently, the distribution is based on the five most recent seasons' placements.

EY's risk analysis indicates that a less lucrative agreement than before can have significant effects.

I would say that it does not affect the major clubs, as the percentage of TV revenue in their total net sales is low. But for the smaller clubs, TV revenue accounts for up to 35 percent of the total. And that is quite a lot, says Carlos Esterling.

"Tougher situation"

Some of the Allsvenskan clubs' economies are directly dependent on the agreement. For Halmstads BK and IFK Värnamo, TV revenue accounted for 35 and 27 percent of net sales, respectively.

Värnamo, however, does not express great concern.

But with that said, it probably doesn't matter what TV agreement we have. For we will always, with fewer supporters, less sales, and perhaps a tougher situation to sell players, be dependent on these funds, says Lisa Lidén, club manager at IFK Värnamo.

She says that the club constantly weighs the risk of having too large a share of its revenue tied to TV revenue.

"Will get problems"

We are dependent on the funds and especially in the competitive situation we are in. Then we look at all opportunities, where we try to be creative and wise to bring in more money.

Carlos Esterling says that what most risks increasing the gap between the top and bottom tiers in Allsvenskan is how clubs succeed with their player sales.

Major clubs like Malmö, Djurgården, and Hammarby have continuously increased their revenue by selling players expensively.

Those clubs that do not succeed will get problems. For those who succeed generate enormous leverage. And it is here that the risk is greater, for those who do not keep up, than with the new TV agreement, says Esterling.

+ Total net sales

Totaled 3.5 billion kronor.

+ Record-high player sales

27 percent of total net sales. Player sales totaled 956 million kronor, which is a new record for Allsvenskan.

+ Increase in equity capital

The equity capital increased on average by 19.5 million kronor per team.

Source: The report "How is Swedish elite football doing?" from EY.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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