Connect with us

Football List

How the EFL Championship prize money works 2023/2024

Published

on

Etihad Stadium Manchester City Football Club Ank Kumar Infosys 16

The EFL Championship is one of the biggest and most lucrative second-tier football championships in the world. However, the revenues available to clubs competing in it from prize money and TV revenues are surprisingly small.

 

Surprisingly, clubs are not dependent on the prize money that they get from playing in the Championship. If they were, most of them would quickly go out of business.

 

In Summary, the way the EFL Championship prize money is shared is according to the following:

  • Prize Money (Final table).
  • TV Revenues.
  • Parachute payments.
  • Solidarity payments.
  •  And Gate Money.

 

 

The money they derive from finishing in various places in the league is just a small fraction of the revenue pie.

 

The EFL Championship Prize money

 

The prize money on offer in the Championship is comparatively little, with the winner expected to pick up around £100,000 and the second-placed team £50,000.

 

After that, prize money drops in increments, with the side finishing bottom of the EFL Championship (Barnsley last season), earning around £7,000 in prize money.

 

Meanwhile, the team that claims the third promotion spot via the play-off final participates in what is colloquially known as the richest game in football.

 

That is not because of the prize money for winning the game itself but because of the financial implications of getting promoted to the Premier League.

Read: Football (soccer) tournaments with the biggest prize money in the world

 

TV revenue alone is estimated at £3.1 billion a season in the Premier League, with even the lowest-ranked team in the league set to earn a minimum of £100 million.

 

A leading consultancy firm has estimated that, excluding TV agreements, club revenues may increase from as much as £135 million to £265 million following promotion to the Premier League.

 

TV Revenues

A Championship club will receive between £7 million and £8 million from TV revenues.

 

Included in this figure are the solidarity payment received from the Premier League YV deal (£4.5 million), an equal share based on the Football League’s TV deal (£2.5 million) and the amount received each time their team is featured in a broadcast match (around £100,000).

 

These figures are just a fraction of what is on offer at Premier League level.

 

The total TV revenue pot is just £330 million compared to £2.3 billion, the equal share per club is £2.5 million as opposed to £77 million, and the fee for a game is anywhere between £10,000 and £100,000, which compares with £11 million in the Premier League.

 

Parachute payments

In addition to prize money, teams recently relegated from the Premier League receive what are known as “parachute payments’’.

 

These are intended to initially shield them from the full financial impact of dropping into the second tier of English football and are recognition that clubs may not have time to adjust budgets to their new reality.

 

These payments come from the Premier League’s equal share dividend of TV revenues.

 

This is a baseline figure shared between the 20 Premier League clubs, on which they receive incremental revenues each time they are selected for a live match.

Read: Most valuable soccer players in the world

 

In their first season back down, a relegated side received 55% of what they would have earned had they still been in the Premier League. This drops to 45% in their second season and 20% in the third, with the proviso that they must have spent at least one season at Premier League level.

 

Based on recent figures, Burnley, Norwich City and Watford, all relegated from the Premier League at the end of the 2021/2022 season, were all expected to receive around £40 million.

 

Solidarity payments

Clubs in the EFL who are not eligible for parachute payments receive Solidarity Payments instead. These are calculated as a percentage of the third-year parachute payment. The amount drops further down the football pyramid – 30% for the Championship, 4.5% in League One, and 3% in League Two.

 

Gate Money

In addition, clubs also earn money from the paying public on the day in terms of gate money, although average attendances vary greatly. A club like Blackpool, for example, has an average attendance of around 10,000, whilst Newcastle United, when they were in it, sold out St. James Park every week with a capacity of 51,000.

 

 

The system is biased

Critics of this system argue that the current system is heavily biased regarding recently relegated Premier League teams and would explain the phenomenon of yo-yo clubs – Teams that seem to alternate between the Premier League and the Championship regularly.

 

Because of the parachute payments, they begin life back in the Championship with an innate financial advantage over many of their rivals, and they can afford to dip into the transfer market to fuel a bid for promotion back to the Premier League again.

 

Some also believe that it rewards failure. Clubs at the wrong end of the Premier League are less inclined to include relegation clauses in players’ contracts – which would automatically see their wages drop if their team dropped into the lower league – because they were effectively insulated from the worst results.

 

Others consider that it encourages recklessness and overspending at Championship level. Clubs are tempted to live beyond their means in the hope of earning promotion to the Premier League and the riches that come with it.

 

The Premier League subsidises the rest

The Premier League is bankrolling much of the league structure under it, and whilst this was agreed when the league itself was set up, some do not like the present system.

 

Football, after all, is supposed to be a meritocracy, and the concept of parachute and solidarity payments hardly suggests that.

 

It also explains, in part, why the concept of a European Super League was greeted with so much abhorrence, not only by the supporters of the teams involved and that of other clubs in the league but also by those throughout the entire football system in England.

 

The Premier League is the golden goose in terms of its TV revenues, which trickle down even to the non-League level. Had the six big clubs succeeded in breaking away, they would have taken a big chunk of that money.

 

What was left to the rest would have been seriously diminished, and the amounts that percolated through to the Championship level would have been disproportionately much lower.

I'm a sports enthusiast, love writing about football. I have been writing about top teams in Europe, the Premier League and La Liga.

Discover the best betting sites and bonuses at bookiesbonuses.com

LATEST ARTICLES

Ewood Park Jack Walker stand Ewood Park Jack Walker stand
The Match26 mins ago

Chelsea FC U21 vs Norwich City FC U21 TV Channel and where to watch online

In the round of 16 of the English Premier League Cup, Chelsea will tackle Norwich City for a place in...

Ninian Stand Cardiff City Stadium Cardiff City v West Brom September 28 2021 Ninian Stand Cardiff City Stadium Cardiff City v West Brom September 28 2021
The Match1 hour ago

West Bromwich Albion U21 vs Arsenal FC U21 TV Channel and Where to watch 2024

Inconsistent West Bromwich Albion welcomes Arsenal to Keys Park in round nine of the English Premier League 2. It has...

Ninian Stand Cardiff City Stadium Cardiff City v West Brom September 28 2021 Ninian Stand Cardiff City Stadium Cardiff City v West Brom September 28 2021
The Match9 hours ago

Where to watch Coventry City vs Maidstone United on TV and live-streaming

In one Monday night football action in the UK, Coventry City FC will tackle Maidstone United in the fourth round...

photo 1518604964608 053f9db26a16 photo 1518604964608 053f9db26a16
Uncategorised4 days ago

Could Man City Face Relegation from the Premier League?

In the world of football, few controversies have stirred as much debate and speculation as the ongoing saga surrounding Manchester...

Millennium Stadium panorama Millennium Stadium panorama
The Match5 days ago

Al-Nassr vs Al Feiha TV channel UK & live stream Wed February 2024

Al Nassr will tackle Al Feiha as hostilities in the AFC Champions League continue on Wednesday evening. The Saudi Pro...

Uncategorised2 weeks ago

Green Pitches, Bright Futures: The Role of Football Academies in Tanzania

A quiet revolution is taking place in the heart of Tanzania, where the passion for football runs as deep as...

Premier League Premier League
Football List3 weeks ago

Top 10 English Football Managers out of work 2024

English football managers are some of the biggest in coaching at the game’s highest level. England has been a football...

Nivia Ashtang Gold Nivia Ashtang Gold
The Match3 weeks ago

Tottenham Hotspur U21 vs Peterborough U21 TV Channel and Where to watch

Spurs impressive form in the Premier League Cup will be challenging by visiting Peterborough United on Saturday afternoon. The Lillywhites...

Nivia Ashtang Gold Nivia Ashtang Gold
The Match3 weeks ago

Bristol City vs Leeds United: TV Channel and Where to watch online

Another Friday night Championship football as Bristol City takes on in form Leeds United. The Robins are now winless in...

Jude Bellingham Jude Bellingham
Football List4 weeks ago

Top 20 Most valuable young players (Under 21) in the world 2024

Under 21 years old, players are gradually dominating the top spot in football rankings, especially in terms of market value....

Jude Bellingham Jude Bellingham
Football List4 weeks ago

Top 20 most valuable footballers in the world 2024 – per Transfermarkt

One of the areas often looked at is the football players market value. The English Premier League, La Liga, Italian Serie...

Liverpool vs. Chelsea UEFA Super Cup 2019 08 14 33 Liverpool vs. Chelsea UEFA Super Cup 2019 08 14 33
Football List4 weeks ago

Top 10 Best Captains in the Premier League (EPL) right now 2024

Captains play a significant role in football, and the EPL is not short of some of the best. Man City,...

Premier League teams 3-letter abbreviations & short name 2023/2024 Premier League teams 3-letter abbreviations & short name 2023/2024
Football List4 weeks ago

Premier League squad values 2024 per Transfermarkt

Ranking the Premier League squad values for the 2023/2024 campaign. But how much are Premier League squads worth? According to...

Lionel Messi Lionel Messi
Football List4 weeks ago

Top 10 Best football captains in the world 2024

Captains are the leaders of the team, and the success of every team depends on who is in charge of...

Son Heung min Son Heung min
Football List4 weeks ago

Top 20 Best wingers in the Premier League 2024

The Premier League is home to some of the most creative wingers in world football. We all know how strong...

Pep Guardiola Pep Guardiola
Football List4 weeks ago

Current (EPL) Premier League managers & assistant coaches 2024

The English Premier League is one of the most competitive leagues in the world.  Since the start of the campaign,...

Kevin De Bruyne Kevin De Bruyne
Football List1 month ago

Top 10 Best box to box midfielders in the Premier League 2024

The Premier League has many talents and veterans in the midfield position, especially with all-round abilities. The EPL is known...

Mikel Arteta Mikel Arteta
Football List1 month ago

Top 10 Youngest Managers in the Premier League currently 2024

The Premier League has seen some of the most experienced managers in world football. However, despite these top names headlining...

Bruges Jan Breydel Stadium 1 Bruges Jan Breydel Stadium 1
Interesting Stadiums1 month ago

Football clubs that don’t own their stadium 2024

Stadiums are an important asset for every club, but unfortunately, not every club has the luxury of owning one they...

Zinedine Zidane by Tasnim 02 Zinedine Zidane by Tasnim 02
Football List1 month ago

Top 15 best available football managers 2024 – coaches out of work

Football management deals with hiring and firing, which is common. Dissatisfaction by club owners and fans often results in some...

Trending