Aspen
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

Huddersfield Charity Partnership Smashes £1m Mark

Mon 30th Jun 2014 | Money & Finance

A ground-breaking fundraising partnership between Huddersfield Town Football Club (HTAFC) and the Yorkshire Air Ambulance (YAA) has raised over £1million. The pioneering ‘Keep It Up’...

£3.5m Business Boost From North East Pop Concert

Thu 19th Jun 2014 | Money & Finance

Businesses across Sunderland are set for another multi-million pound boost this weekend, as the Stadium of Light hosts its second concert of summer 2014. Following the success of One Direction’s...

Vito Mannone Premier League’s Most Cost Effective Keeper

Wed 11th Jun 2014 | Money & Finance

Vito Mannone, Sunderland’s Italian goalkeeper and the Black Cats player of the season, has topped off a great inaugural season with his club after being awarded the ‘Super Saver...

World Cup Playlist For Charity

Thu 5th Jun 2014 | Money & Finance

The England Footballers Foundation charity is to benefit from a World Cup playlist album. England men's players have each chosen a track for the album. They feature Bastille, Avicii, Disclosure, Duke...