Huge financial differences await Norwich City in the Premier League
- Credit: Paul Chesterton/Focus Images Ltd
Bosses at Norwich City have clearly stated they will not be risking the club’s recovering financial health in the Premier League but promotion is set to bring over £150million into the club’s accounts.
That figure is based on the worst case scenario of coming straight back down from the top flight after one season, which would be followed by parachute payments for two seasons, currently worth around £70m in total.
The Premier League publishes details of its ‘central payments’ to clubs at the end of each season, which are expected to be broadly the same when they are published next month. These show the team relegated in 20th in 2017-18, West Brom, received a total payment of just under £95m.
That central payment to West Brom was made up of the £34.8m equal share each Premier League club received as well as £4.8m in central commercial revenue and £40.7m in international TV money, both of which are equally shared.
The Baggies received a £1.9m merit payment, based on final position in the table and going up by around £2m per position, so Newcastle claimed £21.2m in 10th and Manchester City £38.6m as champions – with that prize pot equating to 25 percent of domestic broadcast revenue.
The rest of the money comes from facility fees, from the remaining 75pc of domestic TV cash, with 50pc equally shared and 25pc based on how often a club’s matches are broadcast in the UK, so West Brom claimed £12.3m and the top earning teams were Manchester United and Arsenal, with £32.6m each.
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Those riches are mostly thanks to the huge £8.4billion TV rights deals the Premier League has in place, which is due to break £9bn with the new deals in place from next season, with a new overseas deal reportedly rising by 25pc.
That contrasts with the EFL’s new deal coming into force next season, which is up by 35pc, to £595m – with City believed to have made less than £1m in broadcast revenue this season, despite having 14 games shown live.
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While there are many more possible variables involved, it’s clear the Canaries are about to rejoin a very different financial world – coming up against lavishly funded opponents.
Yet as the club’s hierarchy discovered after relegation in 2014 and 2016 their self-funding model dictates that ambition has to be balanced with prudence and careful forward planning.