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

Everton Post Record Net Profits

Fri 31st Oct 2014 | Money & Finance

Everton’s first season under manager Roberto Martinez proved to be as successful off the field as it was on it. The 2013/14 Annual Report highlights record net profits and turnover breaking...

Clubs can save thousands with Spectrum Energy & Miller Sports

Thu 30th Oct 2014 | Money & Finance

Football clubs will be able to avoid spiralling energy bills this winter after Miller Sports Consultancy linked up with Spectrum Energy Systems, a specialist in supplying and installing solar panels...

Home Nations Success a Bonus or a Risk?

Tue 28th Oct 2014 | Money & Finance

Home Nations football is enjoying a resurgence with England, Northern Ireland and Wales all currently topping their UEFA European Championship qualifying group and Scotland aren’t far behind in...

Manchester United Football's Biggest Spenders

Thu 16th Oct 2014 | Money & Finance

There's no more hectic, crazy, and exciting time during the football season than the summer transfer window, especially in the final couple of weeks as clubs scramble to sign new players. Within a...