Paul Rawnsley, Director of the Sports Business Group at Deloitte, commented: “The financial prize for promotion to the Premier League will provide each of the promoted clubs with at least £35m of additional revenue in 2009/10, which largely bridges the revenue gap between the newly promoted clubs and the majority of their Premier League competitors. In addition, even if a club is relegated after one year in the Premier League, guaranteed parachute payments of over £12m per season will be received for two more seasons.”
Commenting on the key challenges for promoted clubs, Paul Rawnsley added: “The main priority for all of the promoted clubs will be survival in the top division. This requires investment on and off the pitch, as well as maintaining a winning mentality and some good luck.”
Alex Byars, Senior Consultant in the Sports Business Group, comments: “The promoted clubs will each receive at least £30m in 2009/10 under the Premier League’s revenue distribution mechanism. Enhanced commercial revenues and higher gate receipts in the Premier League are likely to generate an additional £5m for promoted clubs, based on recent experience. Over the past decade over half of the 30 newly promoted clubs have retained their Premier League status at the end of their first season in the top flight.”
The financial boost for clubs promoted to the Championship from League 1 is now also more significant with 2009/10 being the first season of The Football League’s new broadcasting arrangements at an enhanced value. Leicester City, Peterborough United and one other club that achieve promotion can expect to each receive around £2.5m of additional revenue from The Football League’s distributions and Premier League solidarity payments in season 2009/10. This is an increase of over 50% for the average League 1 club. Each of these new Championship clubs should also benefit from additional matchday and commercial revenues in 2009/10.
After the end of the current season, the 18th edition of the Deloitte Annual Review of Football Finance will be published, providing analysis of football’s finances in England and around Europe.
For more information, please visit www.deloitte.co.uk