How much is the play-off final worth?

We often hear the EFL Championship play-off final being described as the richest match in world football.

This refers to the fact that the winners gain entry into the Premier League, which carries with it lots of potential extra revenue.

But what is the actual value of the victory when everything is taken into account?

Broadcast revenue

It is widely known that it is the broadcast revenue deals that have been the catalyst for the riches of the Premier League.

Initially, the domestic TV rights deal grew and grew, but then the real explosion of revenue came alongside the marketing of international broadcast deals across nations and regions all over the world.

The Premier League will embark on a new cycle of broadcast deals as of next season, and the good news for the play-off winners on Saturday is that the pie has grown ever larger. There has been a slight rise in the domestic deal, but the main improvement in the broadcast revenue comes from the latest deals struck with the international TV channels.

There are 89 separate deals for various overseas territories, including a deal for ships and planes, to broadcast Premier League matches. The amount of money made in international broadcast deals is now substantially more than the domestic rights, and is illustrative of the power of the Premier League on a global scale.

These broadcast funds are the principal reason why the Premier League clubs have become so powerful in the transfer market globally, and why so many clubs appear on the Deloitte rich list every year. It also helps that the Premier League has one of the most equitable distribution models of the broadcast funds, especially when compared to their European rivals.

Around 80% of the broadcast revenues are distributed to the Premier League clubs. The distribution model is slightly different for domestic and international rights, but essentially there is a fixed percentage for every team, then a scaled “merit payment” based on position, and then “facility fees” based upon how many matches are selected for live coverage.

The 2023/24 payment figures are demonstrated above and show how each of the different aspects of the payment to clubs breaks down. Whilst the title winners do earn more money than the relegated clubs, this is mainly due to the merit payments, which increased by an even £2.9 million per position in 2023/24, but this is due to rise to £3.1 million this season, and, due to the increase in revenue in international broadcast money as discussed above, it will likely increase further for the 2025/26 season that either Sheffield United or Sunderland will compete in.

It would be a fair estimate to suggest that even if the play-off winners struggle in the Premier League and come straight back down, the broadcast revenue plus merit payments and facility fees should net them around £120-130 million (and that's not including parachute payments).

Parachute Payments

If the worst does happen to the play-off winners and they get relegated back to the Championship then there is the buffer of parachute payments to help them cope with the drop back to the EFL financially.

Parachute payments are controversial, but have been part of the game since 2006, so there is almost two decades of history to this structure at this stage.

The current structure of parachute payments is undisclosed. The Premier League no longer publishes the amount distributed to clubs relegated from the Premier League in parachute payments, with the last known amounts paid to relegated clubs being an average of £33 million given to clubs in the 2020-21 season. By the time our play-off winners are relegated again this could be as much as £50-60 million.

Extra hospitality

Also connected to matchday experience is the extra hospitality, executive boxes, and corporate packages that are attracted by being a Premier League club. Sales of packages, both matchday and non-matchday, always see an increase as companies and individuals look to show their guests a good time at a Premier League match.

Both stadiums are set up for corporate use so there will likely be a rise in revenue from this source as well.

Extra Attendance

Often with promotion, attendances increase. This is less of an impact for both Sheffield United and Sunderland than it would be for many other clubs, because their attendance is very strong regardless of whether they are competing at the top of the Championship or in the Premier League.

Sheffield United averaged an attendance of 29,962 in their last Premier League season, compared to the current season’s average of 28,130. If those differences are replicated then they can expect an increase of around 6% in attendance.

Sunderland haven’t been in the Premier League since 2016/17, when their average attendance at the Stadium of Light was 41,287, but given the excitement that there would be for their first Premier League season in a decade, one may expect figure closer to the 43,344 they averaged the last time they were promoted back into the top-flight in 2007/08. Their average attendance this season has been 39,182 so there is a potential gain of around 10% attendance figures next season.

How much extra money this translates to for the club is difficult to ascertain, but it is worth a little bit extra in terms of ticket sales, and then a bit more for concessions on matchday as well.

So, how much money will the play-off teams receive?

Bringing all of this together we would expect that the winner of the play-off match could look to receive at least £250 million regardless of their performance in the Premier League.

The figure above factors in a potential instant relegation, which would give at least two seasons of parachute payments, as that is the least that can be expected.

If Sheffield United or Sunderland survive in the Premier League then obviously they would be in for a further season of £120-£130 million in that season, and even relegation at that stage would continue to net them a potential three years of parachute payments.

Expenditures

However, this is not pure profit for these clubs. There are a lot of expenses that a promotion to the Premier League incurs.

There will be clauses in the contracts of existing players and staff members that will include a significant pay-rise for Premier League promotion.

Then there is the investment that will likely come during the summer in player recruitment. Ipswich Town spent well over £100 million on fees for new players, plus the extra wages that they will have paid to those players as well, and yet they were still relegated. The likes of Luton Town, and Sheffield United the last time they were promoted spent a lot less than Ipswich, but it was still a substantial amount.

Leeds United have already been promoted and yet their owners are trying to raise capital by releasing £120 million of shares rather than trying to absorb the costs of recruitment within their Premier League money.

There are also costs associated with stadium adjustments to prepare for the Premier League.

So, whilst the riches of the Premier League are true, what needs to be remembered is that if the clubs want to be competitive on the pitch, there are 17 clubs in the league who have been earning this level of money for many years, and it is very tough to compete with them.

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