Skip to main content

It's time for the annual chestnut

It's time for that annual chestnut about the Championship play off final being the richest game in the world. It is, of course, the case that the team that loses will suffer financially: Financial strain

The financial prize awaiting Aston Villa or Derby County has actually fallen for the first time. Although the overall value of the Premier League TV rights deal has risen to a record £9.2 billion for the first time, the domestic rights bought by Sky Sports, BT Sports and Amazon have fallen from £5.4 billion to £5 billion. The payout for the winner of the Championship final (over time) has fallen from £174m to £170m, still a lot of money.

In some ways more is riding financially on the League One play off final. Sunderland will receive £35m in parachute payments in the coming season, but they still face big financial challenges.

If Charlton are promoted, the chances of barmy Belgian owner Roland Duchatelet selling the club would surely increase. Stay in League One and the club's losses will continue to mount. The best players will leave and there will be plenty of clubs interested in manager Lee Bowyer who is yet to agree a contract for next season.

Both clubs would find the Championship challenging, given the highly uneven playing field created by parachute payments and benefactor owners, not all of whom abide by the spirit of financial fair play rules. This issues has been extensively dealt with by Kieran Maguire of the PriceofFootball, our leading analyst of the finances of football, alongside the 'Swiss Ramble' from Zurich.

Nearly three-quarters of all EFL clubs are losing money, but the biggest losses are in the Championship as clubs chase the elusive dream of Premier League gold. Read here about why Nottingham Forest are keen to join the Premier League party: Financial reasons for wanting promotion

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more