EXCLUSIVE: The Race to the Ultimate Pay Day

By iSportconnect | May 18, 2016

The prestige and economic boost of Premier league football has always been a significant reward for promoted Championship teams, but this season that prize increased to previously unseen levels.

The discussion about the pay day almost overshadowed the action on the pitch for Brighton and Middlesborough’s clash on the last day of the Championship season – with one of the clubs guaranteed promotion. Middlesborough went on to claim one of the biggest pay days in the history of football, ahead of Brighton.

Now as Sheffield Wednesday and Hull City prepare for the Championship playoff final, it’s worth going over the numbers once again for the second, and final, mammoth pay day.

The £5.14 billion ($7.14 billion) television deal with Sky Sports and BT Sport means the playoff final will be the most lucrative ever.

iSportconnect spoke to Deloitte’s Richard Battle to break down the numbers.

“For any football team, getting to the Premier League has a great deal of sporting merit regardless of the financial implications attached to it.”

“It is without question the play-off final worth more than any play-off final before it, in terms of the incremental revenue uplift that whoever wins it will receive based on playing next season in the Premier League and getting at least two years of parachutes-  if they leave the Premier League.”

“For Sheffield Wednesday we’re looking at incremental revenue uplift of around £170 million ($245 million), with Hull we’re looking at £110 million ($158 million) as they are entitled to parachute payments and will continue to receive these if they don’t go up to the Premier League.”

Whilst the focus will be on Wembley, there is also some good news for Aston Villa, Newcastle and Norwich. Despite being relegated from the Premier League, the new TV money will be reflected in their parachute payments.

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“The clubs who have gone down this season will benefit from the same parachute payments as the clubs who go down next season and the season after. The way the parachute payments are calculated mean Aston Villa, Newcastle and Norwich will receive parachute payments based on the new broadcasting deals.”

It’s also interesting to reflect on the details of Leicester City’s shock win at the other end of the table. It’s clear that their win will ensure their finances look healthy for years to come.

“Leicester through winning the league will get qualification for the Champions League next season, which is a fantastic prize in footballing and financial terms and they will also get merit payments based on winning the league – £1.3 million ($1.9 million) per place, compared to where they finished last season, is a massive increase in revenue, they may also get some incremental uplift in match day revenues and commercial revenues or indeed via bonuses from commercial partners this season.”

Leicester City’s win has also had another impact. With several bookmakers stung by an unexpected pay out at Leicester’s pre-season odds of 5000/,1 Burnley and Middlesbrough’s odds are, unsurprisingly, not quite as generous… They’re priced at 1500/1…

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