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Sky Bet League 1

Cost of another relegation

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Cost of another relegation

Post  Hieronymus on 2018-02-21, 5:28 pm

This is grim reading - we have to avoid this at all costs. Shocked

Mind not sure of their figures as i am sure we actually made £99m last season, not £150m as claimed.

Revealed: How much relegation to League One would cost Sunderland AFC
Sunderland are bottom of the Championship but still have a good chance of getting themselves out of trouble
Mark Douglas

  • 13:59, 21 FEB 2018
  • Updated14:02, 21 FEB 2018

Relegation to League One would cost Sunderland over £5million in lost revenue at a stroke.
The Black Cats dropped back to the bottom of the Championship on Tuesday night after defeat at Bolton but mercifully remain in touching distance of survival if they can find form in the run-in.
It is a safety battle they need to win. ChronicleLive can reveal that demotion will wipe more than £5million off their revenue streams in an instant – with a steep drop in both EFL solidarity payments and also the league’s ‘basic award’ payment.
In the Championship, club’s are due a flat payment of £2.084million which encompasses their share of the broadcasting deal. Unlike in the Premier League, this is not linked to final league placing and there is no prize money.
This drops starkly to just £677,000-a-year for clubs in League One, while clubs in League Two bank just £472,000.
Championship clubs also get a “solidarity payment” from the Premier League – which is distributed from their whopping TV deal. Clubs in the Championship get £4.3million – but it drops to £645,000 for clubs in League One.
These are figures for the 2016/17 so are subject to change but that would represent a £5million loss in revenue and illustrates how much League One and League Two are the poorer cousins of the top two divisions.
In League One Sunderland would be making just over £1million from centralised payments. They made £150million for finishing bottom of the Premier League last season.
Of course the saving grace for the Black Cats would be the continued parachute payments. They would bank around £33million next season – whichever division they are in – and would stand to receive another £15million in the third year following relegation.
These figures have helped many clubs who have dropped into League One after a stint in the Premier League. Wolves won League One in 2013/14 having been relegated twice and Wigan are in the promotion places in the Championship and are still receiving parachute payments and it’s known that clubs in the third tier are frightened of the prospect of the Black Cats coming down for the impact that it would have on the division.
The feeling will be mutual, with the prospect of revenue drops in League One.
The other form of revenue is based on how many games are selected for live TV. In the Championship a home club banks £100,000 for every home game (which rises to £120k and £140k if a TV game is on Sundays or Thursdays respectively). For an away game it is £10,000.
In League One home clubs make £30,000 for a live TV game.

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Re: Cost of another relegation

Post  Black Cat Kiwi on 2018-02-21, 9:10 pm

Figures....At least some journalist is attempting to find the trees in the forest.

Probably a load of bollocks but it still looks like no sale for approximately 18 months  Rolling Eyes

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