Exclusive:Football finance expert explains just how much Sunderland will earn after Premier League promotion
Sunderland secured promotion back to the Premier League with a win over Sheffield United at Wembley
A football finance expert has outlined the spectacular financial boost Sunderland will land as a result of their play-off win over Sheffield United at Wembley.
Dr Daniel Plumley says television revenues alone will deliver a boost well in excess of £100 million, with another significant boost even if the Black Cats weren't able to survive next season.
“A brilliant weekend and bigger for them financially than Sheffield United, and that's due to the fact that Sunderland haven't been in the league for a few years," Plumley said.
"It depends on how you want to look at the numbers - you'll have seen this ‘£200 million game claim’ - that does take into account parachute payments as well. Obviously no club wants to go up and then get relegated, but the minimum increase next year will be £120 million-ish on the revenue line. That's Premier League TV broadcasting. Even if you finish in the bottom three, it's minimum £105 million, and then a little bit of additional sponsorship and commercial leverage.
“Match day won't change too much because they sell out anyway, so the match day income won't really shift too much. But if you look at their revenue in the two seasons in the Championship prior, it's around £38 million. So you’re putting £120 million on that overnight - it shoots it into the £160 million range.
“And then, of course, if the worst happens, you're still going to get some parachute payments. And obviously you're trying to get back. If you can stay there, then it's another £100 million for the next season as well. So it does depend on how you want to spin those numbers, but the reality is that the single uplift in one season is going to be £120 million on the revenue line overnight.”
The added financial benefit of Sunderland's promotion to the Premier League
Plumley also explained how Sunderland would benefit commercially from the added exposure of the Premier League, particularly because of the international opportunities it opens up.
“That [£120 million] is a kind of conservative number," Plumley explained.
"So you put about £15-20 million on that increase on what they've currently got. It's not an exact science that, because some deals might have promotion clauses already built in - they'll have it in with sponsors that if they do get promoted, then they have to pay more.
“It'll also allow them to go out to sign new deals as well, and you look at that through the lens of the exposure it gives the partners. The Premier League is broadcast to 190 countries around the world. There's not many places in the world you can't watch Premier League football. That's the sell that you're trying to give to your international partners. So it is a conservative number, but it's wrapped up in the wider exposure piece and what it can bring to a club. You're looking at how you can maximise that through commercial partnerships, merchandise, and some of those contracts they've already got might have those things built in for an uplifting value as well.
“It's huge [for global branding]," he added.
"And I think, again, you look at the Sunderland fans, the fan base is phenomenal, isn't it? Particularly from a UK perspective, you've seen the attendances have always held strong, even when they were down in League One. You saw the crowds at Wembley on Saturday. You've got that, you've got to protect that and maintain it.
“But then how do we engage better with our global fans? And being in the Premier League gives you more opportunity to do that. But also it puts more eyes on you as well as a club, especially if you've not been there for a few years. So it's then about, right, can we leverage that to attract maybe new fans or can we leverage that to attract new commercial partners? And as I say, there's not that many countries in the world that don't show it. There's a handful, but everywhere else, you can watch live Premier League football. That's the exposure piece that it can give you, and that's how you can look to maximise it. And clubs are looking to do that more and more nowadays with global and international partners, but also with how they connect with their fan bases all the way around the world.”
Interview courtesy of Beste Online Casino Nederland
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