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THE RICHEST GAME IN FOOTBALL 
Championship Play-Off Final:
Brentford v Fulham
August 4, 2020
Finances Breakdown
[Thread]
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Championship Play-Off Final:
Brentford v Fulham
August 4, 2020
Finances Breakdown
[Thread]
Deloitte have projected revenues for both teams if they win promotion into the Premier League:
Brentford promoted - a potential £170m (over 3 years)
Fulham promoted - a potential £135m (over 3 years)
A £35m difference - important to bear in mind for this thread
Brentford promoted - a potential £170m (over 3 years) Fulham promoted - a potential £135m (over 3 years)A £35m difference - important to bear in mind for this thread
Why "potential" revenues?
Using Brentford's "potential" £160m as an example:
[1] Broadcasting Revenue = ~£85m
[2] Parachute Payments = ~£75m spread over 2 years IF the club is relegated from the Premier League (in the first season)
Using Brentford's "potential" £160m as an example:
[1] Broadcasting Revenue = ~£85m
[2] Parachute Payments = ~£75m spread over 2 years IF the club is relegated from the Premier League (in the first season)
[1] Broadcasting Revenue
This is fairly straight forward
Clubs get big money to have their games shown on TV
Breakdown in this thread: https://twitter.com/beardedfinance/status/1247216456766455808?s=19
This is fairly straight forward
Clubs get big money to have their games shown on TV
Breakdown in this thread: https://twitter.com/beardedfinance/status/1247216456766455808?s=19
[2.1] Parachute Payments
"Parachute payments" are why Fulham's potential earnings from promotion back into the Premier League is £35m less than Brentford's...
"Parachute payments" are why Fulham's potential earnings from promotion back into the Premier League is £35m less than Brentford's...
[2.2] Parachute Payments
What are they?
Club X receive money over 2 or 3 years AFTER they've been relegated:
2 yrs - teams that are relegated from the Prem in their first season after promotion
3 yrs - teams that were in the Prem for over 1 season before being relegated
What are they?Club X receive money over 2 or 3 years AFTER they've been relegated:
2 yrs - teams that are relegated from the Prem in their first season after promotion
3 yrs - teams that were in the Prem for over 1 season before being relegated
[2.3] Parachute Payments
How much will relegated Club X get?
They receive a % of the broadcasting revenue paid to Premier League clubs
Year 1 = 55% = ~£40m
Year 2 = 45% = ~£35m
[Year 3 = 20% = ~£15m] - if they last more than 1 season in the Premier League
How much will relegated Club X get?They receive a % of the broadcasting revenue paid to Premier League clubs
Year 1 = 55% = ~£40m
Year 2 = 45% = ~£35m
[Year 3 = 20% = ~£15m] - if they last more than 1 season in the Premier League
[2.4] Parachute Payments - a caveat
Parachute payments stop if a club is promoted back into the Premier League during their 2/3 year parachute payment period
This is where Fulham currently lie - (relegated in 2019)...
Remember our £35m difference?
Read on
Parachute payments stop if a club is promoted back into the Premier League during their 2/3 year parachute payment periodThis is where Fulham currently lie - (relegated in 2019)...
Remember our £35m difference?
Read on
Fulham have a parachute payment period of 2 years as they were relegated in their first season back in the Prem
They've already received Year 1's payments of £40m
But if they're promoted back into the Prem, they'd miss out on Year 2's payments of £35m
Hence, the £35m variance
They've already received Year 1's payments of £40m
But if they're promoted back into the Prem, they'd miss out on Year 2's payments of £35m
Hence, the £35m variance
Brentford would benefit much more from promotion as they do not currently receive parachute payments
Potential earnings are higher as they don't need to forgo any payments like Fulham
Potential earnings are higher as they don't need to forgo any payments like Fulham
Parachute payments are a controversial topic
Norwich, relegated from the Prem this season, are set to receive their first parachute payment of £40m
Is this fair? Probably not
Norwich will be able to keep some of their better players and challenge for promotion again next szn
Norwich, relegated from the Prem this season, are set to receive their first parachute payment of £40m
Is this fair? Probably not
Norwich will be able to keep some of their better players and challenge for promotion again next szn
