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The Barclays Premier league as we know it now today began in 1992. It was formed when the 22 football clubs who finished in the top division of English football that year decided to form a separate organisation away from the rest of the Football League. With English football stadiums run-down and clubs carrying poor reputations due to soccer hooliganism, the formation of the Premier League was seen as a way to improve the sport and bring more money into the game.

As a separate organisation away from the rest of the Football League, Premier League clubs could have more control over their finances and better leverage sponsorship agreements with broadcasting companies like Sky TV. Selling off the rights to broadcast their games live on television meant the Premier League clubs could generate additional revenue streams on top of ticket and merchandise sales.

The restructuring also meant that teams playing in the Premier League had more money to spend on attracting better players from home and abroad. It allowed many of them to improve their stadium infrastructure and start making promotional efforts in foreign markets. Consequently, the influx of funding made the league more competitive given the commercial rewards of staying in or winning the league itself.