Championship play-off final win worth £90m
Deloitte state that the side who secures promotion are set to have an increase in revenue of around £40 million due to broadcast income as well as shirt sales and gate receipts.
Either Swansea City or Reading are set to scoop £90 million when one side wins their Championship play-off clash.
According to Deloitte, the side who secures promotion are set to have an increase in revenue of around £40 million, primarily due to Premier League broadcast income, but this figure is also bolstered by increased merchandise sales and gate receipts.
Parachute payments of up to £48m, spread over the following four seasons if the club suffer relegation next term also cushion any heavy financial outlay in the summer.
“In financial terms, the Championship Play-off Final offers the winning club the most substantial prize in world football. Promotion offers an unparalleled, and potentially one off, opportunity to strengthen the foundations of a club for years to come through sound investment in long term infrastructure, in addition to the expected player acquisitions in the short term,” said Paul Rawnsley, Director of the Sports Business Group at Deloitte.
Alex Byars, senior consultant in the Sports Business Group at Deloitte, believes newly promoted sides now have a better chance in the Premier League but insists investment but be successfully planned, with one eye constantly kept on the club’s long-term aims.
“The newly promoted clubs are often the bookies’ favourites to be relegated, but over the past decade more than half (17 out of 30) of those clubs have successfully retained their Premier League status in that crucial first season, so history shows it can be done,” said Byars.
“Whilst many newly promoted clubs have managed to maintain some momentum from a successful Championship campaign, survival in the Premier League often ultimately hinges on strategic investment on and off the pitch.
“Inevitably, the short term priority is usually investment in the playing squad; but clubs need to also have one eye on the medium to long term, by building in protection against the risk of relegation, through the use of variable pay clauses in players’ contracts.”
Source: goal.com