Newcastle set for £95m Premier League windfall

Newcastle's players celebrate winning the Championship
Newcastle's players celebrate winning the Championship
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Newcastle United will net almost £100million from promotion to the Premier League.

The value of promotion this season for clubs that did not get parachute payments will be at least £170million and could reach a minimum £290million if they avoid relegation next year.

The figures, which come from the Deloitte Sports Business Group, are based on the extra revenue the clubs will get from the Premier League's broadcast rights next season and guaranteed parachute payments for two seasons if relegated in 2018.

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That breaks down to a minimum of £95million, mostly from Premier League's central distributions, and approximately £75million in parachute payments in 2018-19 and 2019-20, as clubs relegated after one season in the top flight are now eligible to only two years of payments.

Brighton and Hove Albion are the only current Championship team certain to earn this much in extra revenue so far.

Lee Charnley and Mike Ashley

Lee Charnley and Mike Ashley

Champions Newcastle will get a smaller increase in central distributions because they received a parachute payment this season.

But only Fulham, of the four play-off teams, had a parachute payment this season – about £10million – meaning the potential upside for Huddersfield Town, Reading and Sheffield Wednesday is the same as it is for Championship runners-up Brighton.

The huge increase in revenue for clubs promoted to the Premier League is why the Championship play-off final, which takes place at Wembley on May 29, is often billed as the most lucrative game in world football.

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Rafa Benitez

Rafa Benitez

It also illustrates the growing gap between the leagues and the financial pressure to stay in the top flight once there.

United managing director Lee Charnley warned about the financial impact of relegation on the club's finanaces last month.

Charnley said: "The financial impact of relegation is difficult to overstate, and this will become evident in our next set of financial results for the year ending June 2017.

"The biggest impact by far is the dramatic reduction in centrally distributed income that comes with dropping down a division; the reality being our income in this area is forecast to fall by over £30m compared to 2015-16.

"To highlight the differences, our 16 live TV games last season earned us £12m in revenue.

"Contrast this with 2016-17 EFL live fees which based on our current number of confirmed appearances (12 away and 6 home), will earn us a total of £720k.

“To illustrate further the cost of relegation, 2016-17 marks year one of the new Premier League TV deal, and the team that finishes in 18th place this season is expected to receive in the region of £30m more revenue than we did for the same place finish last year."

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