THE RICHEST GAME IN FOOTBALL
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Championship Play-Off Final:
Brentford v Fulham
August 4, 2020
Finances Breakdown
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[Thread]
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:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Brentford promoted - a potential £170m (over 3 years)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Fulham promoted - a potential £135m (over 3 years)
A £35m difference - important to bear in mind for this thread
A £35m difference - important to bear in mind for this thread
Why "potential" revenues?
Using Brentford& #39;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& #39;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">https://twitter.com/beardedfi...
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">https://twitter.com/beardedfi...
[2.1] Parachute Payments
"Parachute payments" are why Fulham& #39;s potential earnings from promotion back into the Premier League is £35m less than Brentford& #39;s...
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"Parachute payments" are why Fulham& #39;s potential earnings from promotion back into the Premier League is £35m less than Brentford& #39;s...
[2.2] Parachute Payments
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> What are they?
Club X receive money over 2 or 3 years AFTER they& #39;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
Club X receive money over 2 or 3 years AFTER they& #39;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
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> 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
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
https://abs.twimg.com/emoji/v2/... draggable="false" alt="❌" title="Kreuzzeichen" aria-label="Emoji: Kreuzzeichen"> 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
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This 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& #39;ve already received Year 1& #39;s payments of £40m
But if they& #39;re promoted back into the Prem, they& #39;d miss out on Year 2& #39;s payments of £35m
Hence, the £35m variance
They& #39;ve already received Year 1& #39;s payments of £40m
But if they& #39;re promoted back into the Prem, they& #39;d miss out on Year 2& #39;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& #39;t need to forgo any payments like Fulham
Potential earnings are higher as they don& #39;t need to forgo any payments like Fulham