Cherries ripe for the biggest prize in world football
1 May 2015
On Saturday AFC Bournemouth will secure promotion to the top flight of English football for the first time in their 125 year history and guarantee a revenue uplift of at least £130 million, according to Deloitte, the business advisory firm. This figure would rise to around £230 million should the Cherries maintain their Premier League status in the first season, allowing them to benefit from the new broadcast deals which commence in 2016/17.
Adam Bull, Senior Consultant in the Sports Business Group at Deloitte, commented: “Whilst the beauty of football is its unpredictability, we can safely say that when the final whistle blows at The Valley on Saturday, AFC Bournemouth will join Watford in gaining promotion to the Premier League and in turn earn the most lucrative prize in world football.”
With automatic promotion all but settled, attention turns to see who will qualify for the play-offs. Ipswich Town, Derby County, Brentford and Wolverhampton Wanderers are battling to secure 5th and 6th places, with Middlesbrough and Norwich City already guaranteed play-off positions.
Watford and AFC Bournemouth can expect a revenue increase of at least £130m. This is a combination of the extra income they will earn from playing in the Premier League in 2015/16 and parachute payments should they be relegated after one season. The uplift would be the same for the majority of clubs challenging for the play-offs, although Norwich and Wolves would see a smaller increase as they are already in receipt of parachute payments.
Bull added: “The prize becomes around £230 million if the promoted club can survive its first season in the Premier League and benefit from the new and improved broadcast deals in the 2016/17 season. Although the clubs promoted last season are fighting a relegation battle, in each of the last six seasons at least two of the three promoted clubs have successfully retained their Premier League status in that crucial first season.
“The continued increase in the value of promotion to the Premier League provides newly promoted clubs the opportunity to make strategic investment on and off the pitch. Inevitably, the short term priority is usually investment in the playing side of the business, but clubs should also look to make improvements for the medium and long term.”
Note to editors
About the Sports Business Group at Deloitte
Over the last 20 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.
For further information on our services you can access our website at www.deloitte.co.uk/sportsbusinessgroup
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