How much is a win at Wembley worth to Leeds United, Southampton?

The richest game in football is upon us, but how much would a win at Wembley in the Championship play-off final be worth to Leeds United and Southampton?

How much is this season’s Championship play-off final worth?

This weekend’s clash at Wembley is one of a kind Leeds United vs Southampton will be only the second Championship play-off final since 2000 between two teams boosted by parachute payments a year after they were relegated from the Premier League.

And because of the parachute payments, the financial prize on the line for Leeds United and Southampton it is slightly lower than it would have been if Norwich City and West Brom had progressed to the final.

It’s worth noting that the funds on offer for the winner of Leeds v Southampton on Sunday afternoon will not come via a one-off payment. In return, they will benefit from an increase in their income in the following seasons.

According to the data collected by the accounting firm Deloittethe winners’ earnings (spread over three years) would increase by £140m, whereas they would have been around £170m if they had not already been boosted by the parachute payments.

Let’s say Leeds/Southampton avoid relegation after their first season back in the Premier League. In this case, their income has the potential to exceed £305m, with the majority of these funds coming through an increase in broadcast, commercial and matchday income.

For example, there was a lot more on the line last season for Luton Town and Coventry City (as paying teams without parachutes) than for Leeds United and Southampton. To give you an idea of ​​the difference, Ipswich Town – who won automatic promotion to seal their return to the Premier League after 22 years away – will see their income rise to at least £200m next season .

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Returning to parachute payments, Leeds/Southampton would earn 55% of the central broadcast distribution earned by each Premier League club in their first season back in the Championship if they go straight back. For the second season back in the Football League, their percentage would drop to 45%.

Leeds United/Southampton would qualify for a third year of parachute payments (20%) if they spend at least two seasons in the Premier League after promotion from the Championship.

The impact the loss could have on the losing team…

Given what’s at stake for the winner and loser of the Championship play-off final, it’s easy to see why the highly-anticipated fixture at Wembley usually ends up being a wet squib.

For the loser, it’s not bad at all, as the two runners-up tend to split the Wembley gate receipts, which usually equates to around £2m, equally.

This was different in 2017 as Huddersfield Town and Reading reached an admirable pre-match agreement whereby the losing team would receive £4m instead of £2m, with the Royals ultimately benefiting from this consolation prize doubled.

In a desperate attempt to destroy the Premier League’s exclusive club, Championship play-off contenders often take financial risks in the transfer market to boost their chances of promotion.

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Given what is at stake for the play-off winners, this is undoubtedly a risk worth taking. But it does mean a difficult season or two ahead for the team that loses at Wembley.

Of the last six beaten in the play-off final, only two teams finished in the top six the following season, with Aston Villa (17/18) and Brentford (19/20) bucking the trend. Interestingly, each side were luckier the second time around and were promoted a year later than they had originally hoped.

Coventry City didn’t fare too badly this season either, as they finished ninth and almost beat Manchester United on their way to the FA Cup final.

But more often than not, teams collapse after losing in the Championship play-off final, with Derby County, Reading and Sheffield Wednesday being recent examples of teams falling into financial crisis after narrowly missing out on a return to the Premier League League.

Prize money in the Premier League

Just go here for a more detailed breakdown of how Premier League prize money is distributed between the 20 teams.

But focusing on the bottom four (assuming that’s where Leeds or Southampton will end up next season), Sheffield United earned £3.1m to finish 20th, while Nottingham Forest, on 17th place, took home £12.4m.

That’s without taking TV money into account. To give Leeds and Southampton an idea of ​​what that could be, the money earned from TV revenue this season in the Premier League has ranged from £8.4m (for Burnley’s nine televised matches) to 15 .2 million pounds (for Nottingham Forest’s 17 televised games). Games).

£140m boost precedes slippery slope for play-off winners

Some naïve supporters of Leeds United and Southampton may feel that no negatives will emerge from their return to the Premier League, earning them £140m.

But even with this huge helping hand, it’s still very easy to end up in the financial red at the end of the year, as increased spending is often required to close the quality gap between the Championship and the Premier League.

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For example, Huddersfield Town’s promotion through the play-offs brought them increased revenue of around £197m, but the Yorkshire club subsequently spent £230m on transfer fees and wages before relegation after two seasons.

Meanwhile, Nottingham Forest have invested around £150m in signing more than 30 players ahead of their return to the Premier League in 2022 after relying heavily on the loan market to shore up while having to pay around £21m to the play-off side due to promotion. -related bonuses.

There is no right way to spend your playoff winnings. Luton Town have largely opted to keep cash in the bank to secure their future, while Aston Villa and Brentford are recent examples of teams that have managed to settle (and thrive) in the Premier League following their play-off triumph -off.

At a guess I imagine Leeds and Southampton will go the route of the latter sides and go for the anti-Luton approach of throwing money at it in the hope that they can stay in the money vacuum that is the Premier League for as long as a lot. as long as I can before the bubble bursts.

Freelancer used to canceling parachute payments?

Football in England could be set for big changes in the coming years with the impending introduction of an independent governing body.

EFL boss Rick Parry is unpopular but has been a vocal critic of parachute payments for some time, arguing that it creates a closed shop and that more help should be given from Premier League teams to clubs in below the pyramid.

For that dream to become a reality, Parry wants parachute payments to be completely scrapped, and in turn this would likely see the prize money on offer to the winners of the Championship play-off final significantly less than it is in its current form. .

In January, Parry explained: “Sustainability requires better regulation, but equally important is redistribution, because we can show that two-thirds of our clubs are insolvent.

“This is not about horse-trading over percentages – we have two ‘cliff edges’.

“One is between the bottom of the Premier League and the top of the Championship – the gap is almost £100m – it’s almost insurmountable.

“But we have another one because we have ‘parachute payments’ – so a difference of £40m in the Championship. And it is these gaps that cause irrational behavior.

“We would like to eliminate parachute payments and we need more money.”