Championship clubs' earnings vary significantly depending on whether they receive Premier League parachute payments, but collectively, the league's revenue reached £749 million in the 2022/23 season. This figure represents a 10% increase from the previous season's £678 million, largely influenced by the mix of clubs in the league.
Understanding Championship Club Revenue
The financial landscape of the Championship is notably shaped by the presence of clubs recently relegated from the Premier League, which benefit from substantial parachute payments. These payments are designed to soften the financial impact of relegation and help clubs remain competitive.
Average Revenue Breakdown
The difference in revenue between clubs receiving parachute payments and those that do not is substantial:
- Clubs with Parachute Payments: The five clubs benefiting from parachute payments in the 2022/23 season had an average revenue of £66 million each.
- Clubs Without Parachute Payments: The other 19 clubs in the league averaged revenue of £22 million each.
This disparity highlights the competitive and financial advantage enjoyed by teams that have recently dropped out of the top flight.
Key Financial Insights (2022/23 Season)
To summarize the financial performance of Championship clubs:
| Category | Description | Revenue Figure |
|---|---|---|
| Total League Revenue | Combined revenue for all Championship clubs | £749 million |
| Average (Parachute Clubs) | Average revenue for clubs receiving parachute payments (5 clubs) | £66 million (per club) |
| Average (Non-Parachute Clubs) | Average revenue for clubs not receiving parachute payments (19 clubs) | £22 million (per club) |
| Year-on-Year Growth | Increase in total league revenue from prior season | 10% |
Sources of Revenue for Championship Clubs
Championship clubs generate revenue from various streams, including:
- Broadcasting Rights: A significant portion comes from TV deals, though these are considerably smaller than Premier League agreements.
- Matchday Income: Ticket sales, hospitality, and concession sales on match days.
- Commercial Activities: Sponsorship deals, merchandise sales, and other marketing initiatives.
- Player Sales: Profits from selling players to other clubs, particularly to the Premier League or top European leagues.
- Parachute Payments: For relegated Premier League clubs, these payments provide a substantial financial boost for up to three seasons.
The differing abilities to capitalize on these revenue streams, coupled with the presence of parachute payments, create a diverse financial environment within the Championship.
