Norwich City win battle for £120m Premier League prize - but where does all the money come from?

Coffers could swell to £230m if the winner avoids relegation next season

Tom Sheen
Monday 25 May 2015 17:11
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Cameron Jerome
Cameron Jerome

The Championship play-off final has long been billed as the most lucrative game in football.

With the winner gaining promotion to the Premier League and the massive TV deal on offer, the fortunes (and coffers) of today's winners Norwich City could be changed for a long time thanks to victory at Wembley.

Business advisory firm Deloitte report that each of the three promoted teams will be guaranteed at the least £130million for playing in the Premier League next season, a number that could swell to £230m if they avoid relegation - because the new TV deal kicks in from 2016-17.

The deal is worth £5.14billion in the UK alone, a figure expected to rise to about £8bn by the end of the year.

Where will Norwich get their money?

  • The vast majority of it comes from domestic and foreign TV revenue, estimated at a minimum of £60m for next season.
  • Fifty per cent of that comes from an equal share between the 20 clubs, with the other 50 per cent based on 'facility fees' and 'merit fees' - where a team finishes and how many times they were shown live.
  • When the new TV deal kicks in that is expected to rise to a minimum of £90m.
  • A smaller portion comes from prize money - Queens Park Rangers were given £1.2m for finishing bottom this season, a stake that rises incrementally up to the £24.7m that Chelsea were given for winning the league.
  • A big part comes from parachute payments if a team is relegated. Under the current four-year scheme that equals £24m in the first year, £19.2m in the second year and £9.6m in the third and fourth years.
  • Parachute payments will be cut to three years when the new deal kicks in, but the first year will be worth an estimated £30m at least, with the second year around £25m and the third year £20m.
  • Norwich will receive almost £20m from the Premier League if they lose today from the second year of their parachute payments after being relegated in 2014.

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