The Football League Championship Play-Off Final on 24 May will again represent the biggest financial prize in world football, worth around £60m. Given there are eight Championship clubs (in addition to West Bromwich Albion) still chasing promotion, the final fixtures on Sunday promise drama and tension on the pitch, on the terraces and in the boardroom.

Paul Rawnsley, Director of the Sports Business Group at Deloitte, commented: “The financial prize for promotion to the Premier League will provide each promoted club with at least £35m of additional revenue in 2008/09.  In addition, even if a club is relegated after one year at the top level, guaranteed parachute payments of over £12m per season will be received for two more seasons.”

Commenting on the trend of global interest in English clubs, Paul Rawnsley added: “Going forward there will continue to be significant investor interest from around the globe for English clubs, in part driven by the prospect of the financial rewards and global exposure of the Premier League competition.”

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 2008/09 under the Premier League’s revenue distribution mechanism. This largely bridges the revenue gap between the newly promoted clubs and the majority of their Premier League competitors. 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 half (15) 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.  Swansea City and the other two clubs that achieve promotion can expect to receive around £1.4m of additional revenue from The Football League’s distributions and Premier League solidarity payments in season 2008/09.  This is an increase of over 30% for the average League 1 club.  Each of these new Championship clubs should also benefit from additional matchday and commercial revenues in 2008/09.

After the end of the season, the 17th edition of the Deloitte Annual Review of Football Finance will be published, providing analysis of football’s finances in England and around Europe. 

Ends

Note to editors
Teams involved or already promoted:

• Championship – West Bromwich Albion (all but promoted), Stoke City, Hull City, Bristol City, Watford, Crystal Palace, Ipswich Town, Wolverhampton Wanderers and Sheffield United.
• League One – Swansea City (already promoted), Doncaster Rovers, Nottingham Forest, Carlisle United, Southend United and Leeds United.

About the Sports Business Group at Deloitte
Over the last 15 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.

For further information on our services you can access our website at www.deloitte.co.uk/sportsbusinessgroup

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country’s leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.