Thursday 12 February 2015

The financial benefits of the Championship

The new Premier League television deal will boost payments to Championship clubs from 2016. Under a newly agreed formula, they will receive £5m a year, more than double the present £2.3m. In addition they receive about £2m in television revenue.

Payments for League One will also be increased to £750,000, but that will leave a gap of over £4m with the Championship. In addition, gate revenues are significantly higher in the Championship, with much more away support.

However, the new television deal will see parachute payments increase from £59m over four years to more than £80m. This will make it increasingly difficult for clubs like Charlton to compete, particularly given that some clubs have wealthy benefactors. The Championship may follow the model of the Premier League and split into a promotion league, a mid-table league and a relegation league.

It is often forgotten that Roland's whole financial model was based on financial fair play coming into force. This has now been diluted and made much less effective. This was always predictable because of political pressures and the fact that the whole scheme is open to legal challenge.

Some interesting revelations about the situation at Blackpool here: Where did the money go?

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