seat
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FCBusiness Subscription
FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Hull City on the Verge of 120m Promotion Prize

Fri 26th Apr 2013 | Money & Finance

Hull City can expect a revenue boost of at least £120 million if they can secure automatic promotion this weekend, according to Deloitte, the business advisory firm. 

Victory against Barnsley, or defeat for Watford at Leicester City, will see the Tigers promoted to the Premier League after a three year absence. 

Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, commented: “In a week which has seen the Premier League title decided and four of the biggest teams in the world compete in the UEFA Champions League semi-finals, the most lucrative 90 minutes of football could well be played in the East Midlands or South Yorkshire this weekend.

“The three Championship clubs which are promoted this season can expect a revenue increase of more than £60m in 2013/14.  The vast majority of this uplift, approximately £55m, will be from broadcast income as the Premier League enters the first year of its greatly enhanced three year TV deals. 

Based on existing distribution methods, even if a club is relegated after one season in the Premier League, it will be entitled to parachute payments over the following four seasons of around £60m.”

“The newly promoted clubs are often the bookies’ favourites to be relegated, but over the past decade more than half (17 out of 30) of those promoted clubs have successfully retained their Premier League status in that crucial first season.  History shows it can be done.”

Over the past decade the value of promotion to the top flight has increased three-fold.  This is largely due to the increase in broadcast income and greater parachute payments, both in terms of value and length.

Bull added: “The continued increase in the value of promotion to the Premier League provides newly promoted clubs the opportunity to make strategic investment on and off the pitch.  Inevitably, the short term priority is usually investment in the playing side of the business, but clubs need to also look to the medium and long term.”

 

Posted by: Aaron Gourley

To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.

 

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE FCBUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Portsmouth announce operating profit

Tue 31st Mar 2015 | Money & Finance

Portsmouth Community Football Club today announced an operating profit of £118,000 in its first full year of trading. The accounts for the year ending June 2014 show a turnover of £6.6...

UEFA details club competitions financial distribution system

Tue 31st Mar 2015 | Money & Finance

UEFA today announced the detailed financial distribution system for its club competitions for the 2015-18 cycle. The amounts available to the participating clubs and to solidarity payments have...

Southampton announce 33m profit

Tue 31st Mar 2015 | Money & Finance

Southampton Football Club made a £33.4m profit for the year ending June 30th 2014 - the first full-year profit and positive balance sheet net assets for St Mary’s Football Group Limited...

Newcastle United announce record profits

Mon 30th Mar 2015 | Money & Finance

Newcastle United Football Company Limited has today confirmed continued financial progress as it filed its annual accounts for the year ending June 2014. The Club has recorded strong results, with the...