Eagles and Hornets just 90 minutes from £120 million Premier League promotion prize
24 May 2013
The Football League Championship Play-off Final on Monday 27 May will offer the biggest financial prize in world football, worth around £120 million to the winners.
Crystal Palace hope to return to the Premier League after an eight year absence, whilst Watford are bidding for a top flight spot for the first time since 2007. The successful club will join champions Cardiff City and runners-up Hull City who both secured automatic promotion earlier in the month.
Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, commented: “The winners in the all southern affair at Wembley on 27 May can expect a revenue increase of more than £60m in 2013/14. The vast majority of this uplift, approximately £55m, will be from broadcast income as the Premier League enters the first year of its greatly enhanced three year TV deals. Based on existing distribution methods, even if a club is relegated after one season in the Premier League, it will be entitled to parachute payments over the following four seasons of around £60m.
“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 promoted clubs have successfully retained their Premier League status in that crucial first season. History shows it can be done.”
Over the past decade the value of promotion to the top flight has increased three-fold. This is largely due to the increase in broadcast income and greater parachute payments, both in terms of value and length.
Bull added: “The continued increase in the value of promotion to the Premier League provides newly promoted clubs the opportunity to make strategic investment on and off the pitch. Inevitably, the short-term priority is usually investment in the playing side of the business, but clubs need to also look to the medium and long-term.”
After the end of the current season, the 22nd edition of the Deloitte Annual Review of Football Finance will be published, providing analysis of football’s finances in England and around Europe.
Notes to editors:
About the Sports Business Group at Deloitte
Over the last 20 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
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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