SEAT Vegas 2016
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

Levy
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

Arsenal Make 100m From Premier League TV Money

Tue 24th May 2016 | Money & Finance

Arsenal were the big winners in the Premier League making over £100m from broadcasting revenue for the first time. The North London side made £100,952,257 for the 2015/16 season,...

Leicester City Least Of The Big Spenders

Mon 23rd May 2016 | Money & Finance

Leicester City spent the least on player transfers according to figures released by CIES today. The newly crowned Premier League Champions spent on average £1.8m (€2.7m) per player....

Liverpool Fans Demand For Tickets Sees Prices Soar

Mon 16th May 2016 | Money & Finance

Demand for tickets from Liverpool fans for Wednesday’s Europa League final in Basel has seen prices on the open market soar. Liverpool prepare to face current holders Sevilla at the 34,000 St....

Fulham Appoint Former Manchester United & Barcelona Executive

Fri 13th May 2016 | Money & Finance

Fulham Football Club have announce the appointment of Casper Stylsvig as the club’s Chief Revenue Officer. Vastly experienced, Casper joins Fulham after holding senior posts at Manchester...