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Gains and losses from the Championship play off final

According to Deloitte Sports Business Group, reaching the top flight via the Championship play-off final in 2022-23 will earn the winner an increase in revenue of at least £170million across the next three seasons.

This figure could rise to more than £290m if the club avoids relegation after their first season in the Premier League.

Deloitte, the accounting firm, estimates one season in the Premier League will bring additional revenues of at least £90m.

Add on two years of guaranteed parachute payments (the extra financial support that the Premier League gives to relegated clubs), worth close to £80m, and the play-off final will likely yield approximately £170m across three years to its winners, even if their stay in the top flight only lasts 12 months.

Brentford, who secured a 13th place finish during their debut Premier League season, secured merit payments of close to £15m in 2021-22. Avoiding relegation in their first season also secured a third year of parachute payments if they eventually go down. 

There is therefore a chance that one of Coventry or Luton receives nearly £300m between now and 2028. 

There is a dark side of losing a Championship play-off final in recent seasons, with clubs gambling so much on earning promotion. 

Derby County lost the Championship play-off final 2-1 to Aston Villa in 2019 and ended up in administration, stacked up with debts and now in League One, having just missed out on the play-offs this season. 

Reading lost to Huddersfield in the 2016-17 Championship play-off final on penalties and have suffered recent financial troubles and relegation to League One. They were deducted six points in April this year following a breach of the EFL’s financial rules. 

There have been examples of clubs failing to control their budgets properly.   Huddersfield are an example of this. No money was saved from their time spent in the Premier League, with former chairman Phil Hodgkinson telling The Athletic in 2021 that they “received £197m in prize money but spent £230m on playing wages and transfer fees.”

 

 

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