Premiership place 'worth £60m'

03-05-2007

Premiership place 'worth £60m'
A place in the top flight of English football is worth around £60 million to clubs winning promotion from the Championship, a new report has claimed.

Deloitte's investigation into the financial implications of entering the Premiership found that there would be £35 million of guaranteed additional revenue for promoted teams.

Increased gate receipts, TV revenue and brand recognition through the platform of playing Premiership football, which is shown in hundreds of countries around the world, all contributed to the calculations.

Clubs that are relegated from the top division also receive two 'parachute payments' of £10 million over the next two seasons after they go down, which, coupled with all the other financial benefits, means clubs that go up and then come straight back down can be significantly better off.

This season, a place in the Premiership will be worth more than ever before because of the new £625 million overseas TV rights deal negotiated earlier this year.

The domestic TV rights package was also recently renegotiated by the Premiership and split up to be sold in blocks to BSkyB and Setanta, generating even more revenue for the clubs involved.

Sunderland and Birmingham City have already won their places in the Premiership for next season, securing the cash windfall when rivals Derby County lost last Sunday.

Derby, on the other hand, will face the lottery of the play-offs along with three other sides yet to be determined in the hope of scooping a place in the money-spinning league.

With the £60 million prize awaiting the winning club from that end-of-season competition, the play-off final at Wembley on May 28th has effectively become the most lucrative event in club football.


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