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Promotion to the Premiership boosts profits

The authoritative Swiss Ramble takes an in depth look at what promotion to the Premier League can mean for a club in financial terms: https://swissramble.substack.com/p/the-impact-of-promotion-to-the-premier

Despite the additional expenditure on the squad, other staff and facilities, clubs generally improve their profitability in the Premier League. Clubs invariably post large operating losses in the Championship, but either swing to operating profit or at least reduce their losses in the Premier League.

Some clubs saw very chunky improvements in operating profitability, e.g. Newcastle United, Wolves and Leeds United were all at least £70m better. Even in 2020/21, when games were played behind closed doors, Leeds managed to swing from £65m loss to £6m profit (excluding exceptional items).

The description of the “£170m match” is a little simplistic in terms of how much a club’s revenue will increase, and also ignores the impact of higher investment on profitability. Money will be required to strengthen the squad, both in terms of wages and transfer fees, and also to improve stadium facilities.


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