Huge Financial Rewards Awaiting The Winners

Last updated : 16 May 2006 By Gary Calder

With the Coca-Cola Championship Play-off final called “the richest game of football in the world“ due to the monetary rewards on offer through reaching the Premiership, it is estimated that Watford may benefit by up to £30m should they be victorious on Sunday.

However, how is this figure actually attained?

Richard Sutcliffe of the Yorkshire Post delves into the huge financial rewards awaiting the winners in Cardiff.
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The last detailed analysis of the effects of stepping up from the Football League took place in 2003-04 when accountants Deloitte & Touche found a newly-promoted club's annual turnover increased by an average £24m.

Leading Football finance expert, Vinay Bedi of stockbrokers, Brewin Doplhin said: "The play-off final is undoubtedly the richest game in world football. Looking at the overall revenue streams – whether it be gate receipts, television, merchandising or sponsorship – they all go up.

"The Deloitte & Touche figures relate to two years ago and are an average.

Of course, costs go up just as income does once a club wins promotion. Deloitte & Touche found that turnover rose by approximately £24m in the first year following promotion, but that expenditure on transfers and wages went up by £15m-20m."

Prize money based on a club's final position in the top flight can also prove hugely rewarding with each place worth an extra £500, 000.

Football League press officer John Nagle said: "It is difficult to assess exactly what winning the Championship play-off final can be worth due to how much the prize money in the Premier League is handed out.

"For instance, West Ham will have earned a lot more money for finishing ninth this season than Sunderland who were bottom (each place is worth an extra £500, 000).

"The £30m figure that gets bandied about refers to the bottom-placed club who received around £18m (in 2004-05) in broadcasting fees, plus the two parachute payments of £6m per season. But the exact figure could be a lot more.

"It is great for the Football League that our showpiece game should have what must be the biggest prize in world sport.

"Even world heavyweight title fights do not have a prize of £30m plus at stake”.

An added incentive is that by avoiding relegation next season would lead to an even bigger cash injection courtesy of the new television contract.

Sky and Setanta last week sealed a £1.7bn deal to broadcast top flight games for three years from 2007-08 and once the deals for international rights, mobile rights and highlights packages are complete, the figure is set to break the £2bn barrier. This will provide a windfall to the 20 Premiership clubs, with even the team finishing bottom set to pocket more than £30m in 2007/08.

Edited for the Golden Boys