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Premier League newcomers Huddersfield are set for a £170million windfall following their promotion to the top flight – irrespective of whether or not they survive next season.
The Terriers’ Championship play-off final win over Reading on penalties at Wembley put the Yorkshire club back among England’s elite for the first time in 45 years.
In addition to the prestige there is a healthy amount of money which comes with it and little of that is dependent on the future success of any of the promoted clubs.
Brighton and Huddersfield will see revenue leap with at least an extra £95m, mainly from central distributions and parachute payments (totalling at least £75million) in 2018/19 and 2019/20 should they be relegated after one season.
Newcastle’s position is slightly different as they were in receipt of parachute payments in 2016/17 so will benefit from a minimum uplift in central distributions of £60m in 2017/18 and even if they are be relegated the minimum rise in revenue over the next three seasons will be about £120m.
Survival, however, brings even greater rewards with an extra £100million-plus likely to swell the coffers.
The key is to find a way of improving squads – and therefore chances of survival – without risking getting into financial difficulties in the future and in the last decade 18 of the 30 promoted clubs have avoided relegation in their first season.
“We are one year into the new broadcast rights arrangements and fans of these clubs will be fully aware of the financial reward for playing in the top flight next season,” said Dan Jones, partner and head of the Sports Business Group at Deloitte.
“The financial prize for Huddersfield and Brighton becomes at least £290m if the promoted club survives the first season in the Premier League.
“Burnley successfully stayed up this year and a sustained period of Premier League participation could provide any newly-promoted club with the platform to enter the top 30 of the Deloitte Football Money League.
“The current broadcast rights arrangements provide Premier League clubs with the financial resources to make strategic investments both on and off the pitch.
“Whilst this typically includes some increased expenditure on playing talent in the short term, it is important that promoted clubs are committed to long-term financial responsibility.
“Recent history has shown that parachute payments are no guarantee of promotion back to the Premier League if relegation does occur.”
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