Political Economy of Football
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The Price Of Relegation

 

18/05/2008

Relegation from the Premiership affects every aspect of a club's activities. Television money disappears, sponsors want to pay less and those players who stay can expect smaller pay packets. The Deloitte Sports Business Group calculates that the three relegated clubs will have their income slashed by a minimum of 20m each next season. Most of that is the lost share of Premiership money filled by broadcasting rights deals, worth a total of 900m a year. While Fulham, who survived on the last day, can expect to earn 30m next year from the Premiership's broadcasting revenues, Birmingham, Reading and Derby can look forward to a maximum of about 1m of television money from the Football League. Players who do not leave face a pay cut. According to Deloitte, average salaries in the Premiership are about 900,000, but in the Championship they are 200,000. The 11.5m 'parachute' payments for two seasons can soon disappear. There is no guarantee of a quick return for relegated clubs. Southampton, Leeds and Leicester City are evidence of that, while Nottingham Forest have only just made it back to the Championship.

 


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