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£120m Premier League Promotion Prize For The Eagles or Hornets

Fri 24th May 2013 | Money & Finance

The Football League Championship Play-off Final on Monday 27 May will offer the biggest financial prize in world football, worth around £120 million to the winners according to the Sports Business Group at Deloitte.

Crystal Palace hope to return to the Premier League after an eight year absence, whilst Watford are bidding for a top flight spot for the first time since 2007. The winner will join Cardiff City and Hull in what will be the richest season ever to be in the Premier League.

Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, commented: “The winners in the all southern affair at Wembley on 27 May 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.”

After the end of the current season, the 22nd edition of the Deloitte Annual Review of Football Finance will be published, providing analysis of football’s finances in England and around Europe.

Posted by: Aaron Gourley

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