Richest Game in Football

Kingp35

Leeds eye £30m-plus final prize
United facing 'richest game in football'
Richard Sutcliffe

A LEADING expert on football finance believes Leeds United will contest the "richest game in world football" when they face Watford in this month's Championship play-off final.

Estimates of how much a club's income can increase by reaching the Premiership vary, but it is commonly accepted that the minimum a win in the Millennium Stadium final is worth is £30m.

The last detailed analysis of the effects of stepping up from the Football League took place in 2003-04 when accountants Deloitte & Touche found a newly-promoted club's annual turnover increased by an average £24m.
Vinay Bedi, of stockbrokers Brewin Dolphin, believes a club of Leeds's size could expect to significantly improve on that figure should they triumph on May 21.

It would be an amazing turnaround for a club who a little over two years ago had racked up debts of more than £100m. As recently as January last year there were genuine fears of United going under.

Football finance expert Bedi said: "The play-off final is undoubtedly the richest game in world football. Looking at the overall revenue streams – whether it be gate receipts, television, merchandising or sponsorship – they all go up.

"The Deloitte & Touche figures relate to two years ago and are an average. A club like Leeds, who have such a large catchment area and supporter base, could expect to increase their turnover by much more than, say, Watford.

"The timing would be good news for Leeds because their parachute payment (whereby the club are paid £6m per annum by the Premier League for the first two years that follow relegation) ends this summer.
"Of course, costs go up just as income does once a club wins promotion. Deloitte & Touche found that turnover rose by approximately £24m in the first year following promotion, but that expenditure on transfers and wages went up by £15m-20m."

Prize money based on a club's final position in the top flight can also prove hugely rewarding with each place worth an extra £500,000.
Football League press officer John Nagle said: "It is difficult to assess exactly what winning the Championship play-off final can be worth due to how the prize money in the Premier League is handed out.

"For instance, West Ham will have earned a lot more money for finishing ninth this season than Sunderland who were bottom (each place is worth an extra £500,000).

"The £30m figure that gets bandied about refers to the bottom-placed club who received around £18m (in 2004-05) in broadcasting fees, plus the two parachute payments of £6m per season. But the exact figure could be a lot more.

"It is great for the Football League that our showpiece game should have what must be the biggest prize in world sport.
"Even world heavyweight title fights do not have a prize of £30m-plus at stake."
The huge incentive for already promoted Sheffield United and, if they can triumph in Cardiff, Leeds next season is that avoiding relegation would lead to an even bigger cash injection courtesy of the new television contract.

Sky and Setanta last week sealed a £1.7bn deal to broadcast top flight games for three years from 2007-08 and once the deals for international rights, mobile rights and highlights packages are complete, the figure is set to break the £2bn barrier. This will provide a windfall to the 20 Premiership clubs, with even the team finishing bottom set to pocket more than £30m in 2007-08.

It is the Leeds players who will have to cope with the pressure of playing for such high stakes later this month and Shaun Derry has backed his team-mates to cope.
The midfielder said: "It is well documented that it is the most expensive game in world football, so that is pressure on our shoulders.
"However, playing for a club the size of Leeds means we have had pressure all season long so it will not affect us."

The riches on offer for the winner of the Championship play-off dwarf those in League One where the club which wins promotion can expect to receive around £1.65m additional income.

Necronomicon

So....no pressure Kevin Blackwell and Co!

Kingp35

Necromomicon wrote:

So....no pressure Kevin Blackwell and Co!

No, none at all

jank

Hope Leeds do it.

They are too big a club to be outside the Premiership.

smemon

jank wrote:

Hope Leeds do it.

They are too big a club to be outside the Premiership.

here here. much like man city a few years ago, you want them to go up. their a big name with plenty of rivals so they add to the premiership unlike reading, palace, sunderland.... west brom etc.... all cliff hangers that are too good for the championship but too poor for the PL.

jank

Well at least give Reading a chance ffs

Zaph

While it would be great to have all that extra cash, some of it will immediately go straight back out again should Leeds go up. Apparently a clause in the debt restructuring agreement states that the club must pay £5m to their former creditors by 2009 or when they get promoted, whichever happens first. I also heard recently that they'll have to pay Boro £1.8m for Michael Ricketts should they go up. He was signed on a free and has been on loan for most of the season. Irrespective of all this, the only aim for the club, should they go up, is to stay in the Premiership so that they can build for the future.

blu_sonic

I think I'd watch a bit more EPL if leeds were there.