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£170m windfall for winners of Boro-Brighton clash

SoccerNews in General Soccer News 5 May 2016

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Middlesbrough and Brighton and Hove Albion stand to make £170million of additional revenue if they can secure promotion to the Premier League this weekend.

The two will do battle at the Riverside Stadium on Saturday in a crucial Championship encounter with the victors earning a place in the top flight, although a point will be enough for Boro due to their superior goal difference.

As well as the prestige of gracing the Premier League, there is a huge financial incentive on offer to the winners with analysis from Deloitte’s Sports Business Group showing an increase of £170m across the next three seasons, which could rise to £290m should the winning team survive their first season among the elite.

The increase in revenue is down to a combination of factors, with this season’s promoted clubs earning a minimum £40m more than last year’s teams due to the Premier League’s new bumper television rights deal that comes into play.

Explaining the increase, a Deloitte news release read: “Middlesbrough and Brighton, if promoted, can expect a revenue increase of at least £170m across the next three seasons.  

“This is a combination of the extra revenue they will earn from playing in the Premier League in 2016-17 (at least an extra £95m, mostly from central distributions) and guaranteed parachute payments in 2017-18 and 2018-19 should they be relegated after one season (totalling c.£75m across the two seasons).

“Clubs promoted from the Championship this season are guaranteed a minimum of £40m more than was the case for those in the same position in 2015, owing to the Premier League’s new television rights deals commencing from the start of the next season.”

The losing side will enter the play-offs with Derby County, Hull City and Sheffield Wednesday.

For Derby and Wednesday, the revenue increase for winning the play-offs will also be £170m, while Hull would see an additional £110m, the same amount as already promoted Burnley as both teams are already earning parachute payments having been relegated last term.

Richard Battle, senior manager in the Sports Business Group at Deloitte, added: “The prize for Middlesbrough or Brighton becomes at least £290m if the promoted club survives their first season in the Premier League. 

“Promotion to the Premier League provides clubs with the resources to make strategic investments on and off the pitch.

“Whilst the short-term priority is usually investment in the playing squad, a strong emphasis on ongoing financial stability can leave a club well positioned for the future, whether or not they survive that first season.

“Burnley bouncing straight back to the top flight of English football is evidence that short-term financial restraint can support medium-term success.”

Of the 33 teams promoted to the Premier League in the past 11 seasons, 19 have avoided relegation in their first campaign.

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