How much is the Championship play-off final worth? Leeds, Southampton and the ‘most lucrative prize in football’
By Omar Garrick
Leeds Unitedface Southamptonin Sunday’s Championship play-off final for a place in the Premier Leaguenext season.
As well as glory, the winning team stands to gain a significant financial boost.
“This weekend, Wembley hosts the match with the most lucrative prize in world football,” Tim Bridge, lead partner of Deloitte’s Sports Business Group, said.
“The prize, however, is not as significant as it has been in previous years, with both sides having recently felt the benefits, including the financial reward, that come with playing in the top flight. Two clubs bolstered by parachute payments are competing in the play-off final for only the second time since the turn of the Millennium.
“With three of the top four finishing Championship clubs in receipt of parachute payments, the debate over financial distribution across English football and its impact on competitive balance is likely to continue. The cornerstone of English football’s success has been the ability of all clubs to compete. Maintaining the unscripted drama, perfectly evidenced by occasions such as the Championshipplay-off final, is crucial for fans, clubs and governing bodies alike.”
Given there are changes in how much Leeds and Southampton may earn from promotion, The Athletichas taken a look at just how much winning the Championship play-off final is worth and the impact it can have on the losing team…
How much is winning really worth?
Both Leeds and Southampton are aiming to join Leicester Cityin making an immediate return to the Premier League after being relegated at the end of the 2022-23 season. Ipswich Townhave also been promoted, marking their return to the top flight after a 22-year absence.
Accounting firm Deloitte indicates the winning side will experience a revenue increase of at least £140million ($178m) over the next three seasons. This boost could exceed £305m if the promoted team avoids relegation after their first season in the Premier League. This analysis includes projected increases in matchday, broadcast, and commercial revenue.
The boost in revenue is largely due to parachute payments.
Parachute payments ensure relegated clubs get 55 per cent of the central distribution that every Premier League club receive in their first season in the EFL, and 45 per cent in year two. Clubs that had been in the Premier League for more than one season qualify for a final payment in year three at 20 per cent.
Both Leeds and Southampton were already receiving parachute payments, which slightly reduces the financial impact of promotion this year. The three relegated clubs all earned nine figures last season, with Southampton (£103.6m), Leeds (£111.m) and Leicester(£114m) earning more than any club did during the 2015-16 Premier League campaign.
Ipswich, who haven’t been in the Premier League since 2001-02, can expect a revenue uplift of at least £200m, as they were not receiving parachute payments.
All of the promoted sides from the 2022-23 Championship campaign, Luton Town, Burnleyand Sheffield United, were relegated from the top flight this season. All three clubs will receive parachute payments.
What can happen to teams who lose?
The financial stability of clubs significantly influences their fate after the Championship play-off final.
Traditionally, the winners share a portion of their gate receipts with the losing team, usually around £2m, as part of a gentlemen’s agreement. Huddersfield Townwent beyond this seven years ago. Former owner Dean Hoyle revealed that £4m was given to Readingafter their penalty shootout loss, due to a pre-arranged consolation agreement between the clubs.
However, there is also a darker side to losing the Championship play-off final, as some clubs gamble heavily on earning promotion. For example, Derby Countylost 2-1 to Aston Villain the 2019 final and subsequently fell into administration. They have, however, recently been promoted back to England’s second tier following a turbulent period.
Similarly, Reading, who lost to Huddersfield in the 2016-17 final, have faced financial troubles. They have been deducted six points this seasonfor the late payment of wages and failing to meet HMRC payment obligations.
Sheffield Wednesday, who lost 1-0 in the 2016 final, were relegated from the Championship in 2021 following a turbulent period under owner Dejphon Chansiri. Having been promoted in 2022-23, they only narrowly avoided relegation back to League One, finishing 20th.
These examples highlight how close these clubs came to promotion and how drastically different their fortunes could have been had they won.
How can the money change a club?
Much of a club’s success hinges on how wisely they spend their money.
For instance, salary increases and bonuses typically kick in for existing players upon promotion. When Nottingham Forestachieved promotion in 2022, they spent over £150m on new signings during the summer transfer window and managed to stay up, also paying out £21m in “promotion-related payments”.
Villa, meanwhile, have spent significant funds since their promotion to the Premier League in 2018-19, but have also gained money, the most influential being Jack Grealish leaving to join Manchester City for £100m.
But they have invested well and taken risks, having sacked head coaches Dean Smith and Steven Gerrard along the way. Fast forward and they have just qualified for Champions Leaguefootball after finishing fourth this season under Unai Emery.
Huddersfield, who were promoted to the Premier League in 2017 but relegated in 2019, saved no money from their time in the top flight. Former chairman Phil Hodgkinson revealed to The Athleticin 2021 that the club “received £197m in prize money but spent £230m on wages and transfer fees”.
“It’s easy to sit there and say a club is going to receive £170m and everything suddenly looks rosy,” Deloitte’s Bridge told The Athleticin 2021. “The reality is often different.
“How you use that £170m is equally important to the long-term future of the club as the on-pitch performance. Careful planning and adept transfer spending are absolutely essential to make the most of that financial prize on offer.
“We’ve seen lots of examples where clubs will spend heavily in the transfer window following promotion and it just burdens them for a number of seasons post-relegation. It ultimately means the £170m is essentially a little bit worthless.”
How did Leeds and Southampton reach the play-off final?
Leeds reached the Championship play-off final after defeating Norwich City4-0 across two legs. Southampton beat West Bromwich Albion3-1 over two ties.
Daniel Farke’s Leeds finished third in the Championship table on 90 points, while Russell Martin’s Southampton finished fourth on 87 points.
When and where is the Championship play-off final?
The Championship play-off final between Leeds and Southampton takes place on Sunday, May 26 at Wembley Stadium.
The match will kick off at 3pm BST, 24 hours after Saturday’s FA Cupfinal between Manchester Cityand Manchester Unitedat the same venue.
It will be broadcast live in the UK on Sky Sports.
https://www.nytimes.com/athletic/5514531/2024/05/23/championship-playoff-final-prize-money/
How much is the Championship play-off final worth? Leeds, Southampton and the ‘most lucrative prize in football’
By Omar Garrick
Leeds Unitedface Southamptonin Sunday’s Championship play-off final for a place in the Premier Leaguenext season.
As well as glory, the winning team stands to gain a significant financial boost.
“This weekend, Wembley hosts the match with the most lucrative prize in world football,” Tim Bridge, lead partner of Deloitte’s Sports Business Group, said.
“The prize, however, is not as significant as it has been in previous years, with both sides having recently felt the benefits, including the financial reward, that come with playing in the top flight. Two clubs bolstered by parachute payments are competing in the play-off final for only the second time since the turn of the Millennium.
“With three of the top four finishing Championship clubs in receipt of parachute payments, the debate over financial distribution across English football and its impact on competitive balance is likely to continue. The cornerstone of English football’s success has been the ability of all clubs to compete. Maintaining the unscripted drama, perfectly evidenced by occasions such as the Championshipplay-off final, is crucial for fans, clubs and governing bodies alike.”
Given there are changes in how much Leeds and Southampton may earn from promotion, The Athletichas taken a look at just how much winning the Championship play-off final is worth and the impact it can have on the losing team…
How much is winning really worth?
Both Leeds and Southampton are aiming to join Leicester Cityin making an immediate return to the Premier League after being relegated at the end of the 2022-23 season. Ipswich Townhave also been promoted, marking their return to the top flight after a 22-year absence.
Accounting firm Deloitte indicates the winning side will experience a revenue increase of at least £140million ($178m) over the next three seasons. This boost could exceed £305m if the promoted team avoids relegation after their first season in the Premier League. This analysis includes projected increases in matchday, broadcast, and commercial revenue.
The boost in revenue is largely due to parachute payments.
Parachute payments ensure relegated clubs get 55 per cent of the central distribution that every Premier League club receive in their first season in the EFL, and 45 per cent in year two. Clubs that had been in the Premier League for more than one season qualify for a final payment in year three at 20 per cent.
Both Leeds and Southampton were already receiving parachute payments, which slightly reduces the financial impact of promotion this year. The three relegated clubs all earned nine figures last season, with Southampton (£103.6m), Leeds (£111.m) and Leicester(£114m) earning more than any club did during the 2015-16 Premier League campaign.
Ipswich, who haven’t been in the Premier League since 2001-02, can expect a revenue uplift of at least £200m, as they were not receiving parachute payments.
All of the promoted sides from the 2022-23 Championship campaign, Luton Town, Burnleyand Sheffield United, were relegated from the top flight this season. All three clubs will receive parachute payments.
What can happen to teams who lose?
The financial stability of clubs significantly influences their fate after the Championship play-off final.
Traditionally, the winners share a portion of their gate receipts with the losing team, usually around £2m, as part of a gentlemen’s agreement. Huddersfield Townwent beyond this seven years ago. Former owner Dean Hoyle revealed that £4m was given to Readingafter their penalty shootout loss, due to a pre-arranged consolation agreement between the clubs.
However, there is also a darker side to losing the Championship play-off final, as some clubs gamble heavily on earning promotion. For example, Derby Countylost 2-1 to Aston Villain the 2019 final and subsequently fell into administration. They have, however, recently been promoted back to England’s second tier following a turbulent period.
Similarly, Reading, who lost to Huddersfield in the 2016-17 final, have faced financial troubles. They have been deducted six points this seasonfor the late payment of wages and failing to meet HMRC payment obligations.
Sheffield Wednesday, who lost 1-0 in the 2016 final, were relegated from the Championship in 2021 following a turbulent period under owner Dejphon Chansiri. Having been promoted in 2022-23, they only narrowly avoided relegation back to League One, finishing 20th.
These examples highlight how close these clubs came to promotion and how drastically different their fortunes could have been had they won.
How can the money change a club?
Much of a club’s success hinges on how wisely they spend their money.
For instance, salary increases and bonuses typically kick in for existing players upon promotion. When Nottingham Forestachieved promotion in 2022, they spent over £150m on new signings during the summer transfer window and managed to stay up, also paying out £21m in “promotion-related payments”.
Villa, meanwhile, have spent significant funds since their promotion to the Premier League in 2018-19, but have also gained money, the most influential being Jack Grealish leaving to join Manchester City for £100m.
But they have invested well and taken risks, having sacked head coaches Dean Smith and Steven Gerrard along the way. Fast forward and they have just qualified for Champions Leaguefootball after finishing fourth this season under Unai Emery.
Huddersfield, who were promoted to the Premier League in 2017 but relegated in 2019, saved no money from their time in the top flight. Former chairman Phil Hodgkinson revealed to The Athleticin 2021 that the club “received £197m in prize money but spent £230m on wages and transfer fees”.
“It’s easy to sit there and say a club is going to receive £170m and everything suddenly looks rosy,” Deloitte’s Bridge told The Athleticin 2021. “The reality is often different.
“How you use that £170m is equally important to the long-term future of the club as the on-pitch performance. Careful planning and adept transfer spending are absolutely essential to make the most of that financial prize on offer.
“We’ve seen lots of examples where clubs will spend heavily in the transfer window following promotion and it just burdens them for a number of seasons post-relegation. It ultimately means the £170m is essentially a little bit worthless.”
How did Leeds and Southampton reach the play-off final?
Leeds reached the Championship play-off final after defeating Norwich City4-0 across two legs. Southampton beat West Bromwich Albion3-1 over two ties.
Daniel Farke’s Leeds finished third in the Championship table on 90 points, while Russell Martin’s Southampton finished fourth on 87 points.
When and where is the Championship play-off final?
The Championship play-off final between Leeds and Southampton takes place on Sunday, May 26 at Wembley Stadium.
The match will kick off at 3pm BST, 24 hours after Saturday’s FA Cupfinal between Manchester Cityand Manchester Unitedat the same venue.
It will be broadcast live in the UK on Sky Sports.
https://www.nytimes.com/athletic/5514531/2024/05/23/championship-playoff-final-prize-money/
