May 27, 2024 - In the Championship play-off final, the
Southampton
Beat Leeds United 1-0 and successfully promoted to the Premier League. According to relevant statistics, the promoted team may earn up to £305 million in the next three seasons.
According to leading accountancy firm Deloitte, the winner of the Championship play-off final will realize a revenue increase of at least £140 million over the next three seasons. If the promoted side can avoid relegation in their first season in the Premier League, that figure could exceed £305 million. This figure includes growth in matchday, broadcast and commercial revenues.
The huge increase in revenue from promotion to the Premier League is largely due to the famous parachute payments. These are three-year payments made by the Premier League to relegated teams to help them maintain financial stability.
First year
: Parachute payments are 55% of the broadcast revenue shared equally by each Premier League team prior to relegation.
second year
: Parachute payments are 45% of broadcast revenues.
Third year
: If the team has spent more than one season in the Premier League before relegation, the parachute payment is 20% of broadcasting revenue. If promoted back to the Premier League within the payment period, no further payment will be made.
All three teams relegated from the Premier League last season received parachute payments and they all broke the billion dollar mark:
Southampton: £103.6m Leeds United: £111m Leicester City: £114m
All of these revenues are more than any team in the Premier League earned in the 2015-2016 season.
Teams like Ipswich, who have not played in the Premier League since the 2001-2002 season, are expected to see their revenues rise by at least £200 million.The three teams relegated from the Premier League in the 2023-2024 season, Luton, Burnley and Sheffield United, will also be given parachute payments, which will ensure their financial stability after relegation.
