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.
If you have any football business related news stories you’d like to share then please contact us – email@example.com
Thu 22nd Jan 2015 | Money & Finance
Manchester United lead the march of Premier League club’s in football’s rich list but still fall short of Spanish giants, Real Madrid. The Premier League’s huge broadcasting rights...
Fri 16th Jan 2015 | Money & Finance
The Swiss National Bank’s monetary policy change has forced West Ham United’s principal sponsor, Alpari, to close its UK operation. A statement released by the global currency broker on...
Mon 12th Jan 2015 | Money & Finance
If your name is Arsene Wenger it's time to look away as a comprehensive study on the January transfer window indicates that big spending equals big success when it comes to improving your second half...