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TV Cash Windfall For Promoted Clubs

Thu 26th Apr 2012 | Money & Finance

Southampton can expect a revenue boost of at least £90 million if they can achieve automatic promotion this weekend, according to Deloitte, the business advisory firm. 

The Saints need a victory against Coventry City, or West Ham United failing to pick up three points against Hull City, to secure automatic promotion after a seven year absence. They will join Reading who secured promotion to their Premier League last week with a 1-nil win over Nottingham Forest.

Adam Bull, Consultant in the Sports Business Group at Deloitte, commented:  “The three Championship clubs which are ultimately promoted this season can expect a revenue increase of more than £40m in 2012/13. 

“This is primarily due to Premier League broadcast income, in addition to greater commercial income and higher gate receipts. Even if a club is relegated after one season in the Premier League, it is entitled to parachute payments over the following four seasons of up to £48m.”

The Premier League currently divides the £1.78bn domestic broadcast revenue on a 50:25:25 basis; 50% is divided equally between the clubs; 25% is awarded on a merit basis determined by a club’s final league position and the final 25% is distributed as a facilities fee for the number of matches shown on television involving the club. International broadcast revenue is distributed equally between all 20 clubs.

The Football League Championship Final will be hotly contested by the four clubs outside the two automatic promotion places and is oftn touted as the richest final in world football.

Bull added: “The Football League Championship Final will again offer the most substantial prize in the football world, worth around £90 million to the winners of the match.  The financial rewards provide promoted clubs with the opportunity to strengthen the foundations of a club for years to come through investment in long-term infrastructure, as well as investment in players in the short-term.”

Posted by: Aaron Gourley

 

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