Football League to benefit from blockbuster Premier League deal

English football is now entering a new era of untold riches. Their pockets are now heavy with a blockbusting Premier League deal that allows even the smallest teams in the league can now do things other big club’s in Europe can only dream of.

Premier League revenues will likely exceed £5.8 billion next season — almost three times what they were making just nine years ago.

This increase is just one of the reasons a team like Leicester City can compete with bigger clubs and defy the odds to win the league.

However, will this huge deal trickle down to the lower leagues and grant the smallest of clubs the mobility to rise through the divisions and realise their Premier League dream?

Well not exactly, the rich are set to get even richer, while the smaller clubs will receive a cash injection, but not on the scale of the top-flight.

However, endless finance isn’t the be-all and end-all. Swansea City was on the brink of disappearing off the footballing cliff until the club sorted out their structure, organisation, and grew organically up the divisions without pots of cash. Betway boosts the odds on loads of great markets, so be sure to check them out before the Premier League begins.

The danger is, the teams that make it into the top-flight and fall out of it, may start a perpetual cycle of promotion and relegation, with those below stranded without lucrative parachute payment.

With this in mind, the Football League and Premier League recently finalised a new ‘rolling’ agreement that sees a cut of the top-flight’s television revenue redistributed to Football League clubs. In a gigantic step forward, it provides the first ever contracted link between the broadcasting revenues of the two domestic professional leagues, since the formation of the Premier League in 1992.

Under the agreement, parachute payments to relegated Premier League clubs will be reduced from the current four seasons to three terms, with Championship clubs, who are not beneficiaries of parachute payments, awarded a solidarity payment equivalent to 30 per cent of a third-year parachute pay out.

League 1 and League 2 clubs will also receive 4.5 per cent and 3 per cent of a third-year payment, respectively.

Football League chief executive Shaun Harvey says, ‘This agreement is hugely significant for the domestic game, not just for the Football League, but also the Premier League and the England team, both of which benefit from a vibrant and financially sustainable set of clubs beneath the top division that will continue to invest in the players and managers of the future.

‘These measures will be hugely beneficial to all those in the Football League, and is the first step in a hopefully a long fruitful process of dividing revenue fairly.’

Ben Lobel

Ben Lobel

Ben Lobel was the editor of from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

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