Prize Money / Solidarity Payments etc

[BobBobSuperBob]

Following the recent comments from the Accy Chairman about the relative lack of money filtering down from the Premier League I realised I didn't actually know the figures So had a nose.....

 

Firstly , a good article setting out the Incomes in terms of TV / Prize Money in the Premier league for anyone interested

http://www.totalsportek.com/money/premier-league-prize-money/

2016-17 will be the first season under new record breaking three year TV deal which made Premier League the most lucrative football domestic league in the world. SkySports and BT Sports share the broadcasting rights of Premier League in the United Kingdom for the next three years with a huge £5.136 billion deal signed last year. Premier League also signed massive oversees tv deals around the world which takes the total TV income to more than £8.5 billion for next three season. These new TV deals ensure Premier League clubs massive financial downfall from 2016-17 season where even the club finishing bottom of the table will earn around 100 million a year.

We take a extension look how the premier league prize money is distributed and the possible prize money for all 20 positions in the league.

Leicester City as champions earned around £93m last year with old tv deal. But with new TV deal kicking in with 2016-17 season, champions can pocket as much as 150m while bottom placed club will walk away with around £100m. we explain how the tv money is distributed.

Premier League Prize Money Pool For 2016-17 Season: So the total money from both domestic and oversees three tv deals combined is around £8 billion. Which will be divided into three parts making prize money pool for each of the three seasons under the current TV deal period. Thats around £2.6 billion a season to be distributed among premier league clubs (part of it will be used as parachute payments to relegated clubs). So the prize money pool for 2016-17 season will be around £2.5 billion and here is how the distribution model works in premier league.

So the premier league prize money pool for 2016-17 will be setup with two portions of money.

A)  Domestic TV Money (£1.8 billion)

The domestic portion of the money will be divided among 20 clubs according to following model.

1. 50% divided equally (Thats around £38 million each for all 20 clubs)
2. 25% Merit based: divided according to final league position in 2016-17 season (Thats around £2 million for 20th place team rising higher by £2m for every position all the way to £24 million for the champiosn)
3. 25% is divided as facility fee: to all clubs depending on how many times teams match was shown live. (thats around £1 million for every live game or guaranteed £10m if a team only had 10 or less live matches)

B) Oversees TV Money (around £1 billion)

Oversees tv money is divided equally between all 20 clubs and for 2016-17 season all premier league clubs will get around £47 million each from this portion.

So now we know how the TV money is distributed among 20 teams and since we know all the main numbers in TV deals we can pretty much predict prize money table for 2016-17 season. We take the live matches data from last season while league position are from 7th November 2016.

(Possible) Premier League Prize Money Table For 2016-2017

NO#	CLUB	EQUAL SHARE	MERIT BASED	FACILITY FEE	TOTAL
1	Chelsea	£85m	£40m	£25m (25 matches)	£150m
2	Tottenham	£85m	£38m	£22m (22 matches)	£145m
3	Liverpool	£85m	£36m	£25m (25 matches)	£146m
4	Manchester City	£85m	£34m	£23m (23 matches)	£142m
5	Arsenal	£85m	£32m	£25m (25 matches)	£142m
6	Manchester United	£85m	£30m	£27m (27 matches)	£142m
7	Everton	£85m	£28m	£17m (17 matches)	£130m
8	Watford	£85m	£26m	£12m (12 matches)	£123m
9	Burnley	£85m	£24m	£10m (10 matches)	£119m
10	Southampton	£85m	£22m	£14m (14 matches)	£121m
11	West Brom	£85m	£20m	£10m (10 matches)	£115m
12	Stoke City	£85m	£18m	£12m (12 matches)	£115m
13	Bournemouth	£85m	£16m	£10m (9 matches)	£111m
14	Leicester City	£85m	£14m	£17m (17 matches)	£116m
15	Middlesbrough	£85m	£12m	£10m (10 matches)	£107m
16	Crystal Palace	£85m	£10m	£11m (11 matches)	£106m
17	West Ham	£85m	£8m	£15m (15 matches)	£108m
18	Hull City	£85m	£6m	£10m (9 matches)	£101m
19	Swansea City	£85m	£4m	£10m (10 matches)	£99m
20	Sunderland	£85m	£2m	£11m (11 matches)	£98m

 

I had more trouble trying to find what / if there was Prize Money as such in the Championship

It appears that the Champions (Newcastle) won £7.1 million

In addition each Championship Club receives a 'Solidarity Payment' from the Premier League of £4.3 million

Each League One Club £650,000

Each League Two Club £430,000

 

A number of things struck me , firstly (unsurprisingly) the massive disparage between The Premiership Clubs and everyone else and also the drop in size of Solidarity payments between the Championship and L1 / L2

In simple terms relegation would have cost us over £3.5 million in income from this source alone , no small amount , and not too far off our total income from Season Ticket Sales !!!!

Although the amount received by Championship Clubs is a pittance to those in Premier League It's still a sizeable sum 

 

The Championship PO Final this year is now estimated to be worth £220 Million to the winners  

May be of interest to those  , like me may who not have been fully aware of the figures 

[ExiledAjax]

Mad money.  £98m would cover our losses 6 times over with enough spare change for free season tickets for all.

By the way @BobBobSuperBob if you're interested in football finances, enjoy graphs, and have an awful lot of spare time then I'd recommend heading over to the Swiss Ramble's blog.  I don't think you'll find a more detailed analysis of football finances (he can also spell and I suspect he proofreads his articles). This is a link to his now somewhat out of date article on Bristol City http://swissramble.blogspot.co.uk/search/label/Bristol City.

[Tully Bascomb]

Good snooping Bob, It makes an absolute joke of football in this country. The richer get richer, the poorer get poorer. How is tv money distributed in europe?

[BobBobSuperBob]

6 minutes ago, ExiledAjax said:

Mad money.  £98m would cover our losses 6 times over with enough spare change for free season tickets for all.

By the way @BobBobSuperBob if you're interested in football finances, enjoy graphs, and have an awful lot of spare time then I'd recommend heading over to the Swiss Ramble's blog.  I don't think you'll find a more detailed analysis of football finances (he can also spell and I suspect he proofreads his articles). This is a link to his now somewhat out of date article on Bristol City http://swissramble.blogspot.co.uk/search/label/Bristol City.

Thanks - it's post season and a good time to have a nose around 

You having a go at my typing / spelling ? 

[1960maaan]

The figures are ridiculous and I'm not sure if they're sustainable in the long term.  One thing to add to the Championship pot, I found an article that says Villa would get £87m over 3 years in the Championship, same goes for Newcastle and Norwich. If any or all of these teams get promoted inside that time the 'parachute' is then spread among the remaining teams. Not a small figure, relegation would have been troubling to say the least.

[1960maaan]

Just now, BoneyardTIM said:

Good snooping Bob, It makes an absolute joke of football in this country. The richer get richer, the poorer get poorer. How is tv money distributed in europe?

 think I read somewhere that 80% of TV money is shared by the top 3 teams in Spain !!! There were rumblings of change so not sure if that still applies. 

[BobBobSuperBob]

Just now, 1960maaan said:

The figures are ridiculous and I'm not sure if they're sustainable in the long term.  One thing to add to the Championship pot, I found an article that says Villa would get £87m over 3 years in the Championship, same goes for Newcastle and Norwich. If any or all of these teams get promoted inside that time the 'parachute' is then spread among the remaining teams. Not a small figure, relegation would have been troubling to say the least.

Good point 1960 - I didn't include Parachute payments

 

This is how Parachute Payments stood at the start of the season just finished ( Assume they will increase year on year)

Clubs get the following amounts over the three seasons.

In season one, 2016-17, £40 million

In season two, 2017-18,  £33 million

In season three, 2018-19, £14 million.

[Tully Bascomb]

At some stage in the future football as we know it will cease to exist, there will be 1 europeon super league and each country will revert back to a regional structure.

[BobBobSuperBob]

1 minute ago, BoneyardTIM said:

At some stage in the future football as we know it will cease to exist, there will be 1 europeon super league and each country will revert back to a regional structure.

Think you may well be right Tim 

Its becoming virtually impossible to get even close to breaking into the Money drenched Premiership

No wonder Villa were still able to spend £70-80 million this season

[ExiledAjax]

35 minutes ago, BobBobSuperBob said:

You having a go at my typing / spelling ?

Not at all.  I was just suggesting that perhaps totalsportek may like to employ someone to proofread their articles.

[BobBobSuperBob]

Just now, ExiledAjax said:

Not at all.  I was just suggesting that perhaps totalsportek may like to employ someone to proofread there articles.

my fat thumb typing is troublesome  - always end up editing  

[1960maaan]

5 minutes ago, BobBobSuperBob said:

Good point 1960 - I didn't include Parachute payments

 

This is how Parachute Payments stood at the start of the season just finished ( Assume they will increase year on year)

Clubs get the following amounts over the three seasons.

In season one, 2016-17, £40 million

In season two, 2017-18,  £33 million

In season three, 2018-19, £14 million.

There is talk of a sort of restructure, not a decrease in amounts but how they are paid/qualified for. It was stated Blackpool only spent £3.5m after promotion , then obviously had a fire sale on relegation. I guess their point being the owner could have trousered the parachute payments while investing a minimal amount in the club. Not sure how the restructuring will work , but you can see their point.

[1960maaan]

1 minute ago, BobBobSuperBob said:

my fat thumb typing is troublesome  - always end up editing  

showing off cos you can type with more than one finger 

[BobBobSuperBob]

Just now, 1960maaan said:

showing off cos you can type with more than one finger 

Not quite 1960 !!! -one thumb / one finger

Leaves me the other five fingers to hold the I-Pad 

[BobBobSuperBob]

So by my calculations Newcastle accrued £51 million from Parachute payments / solidarity payments and prize money alone this season - not too shabby !!! 

[Bristol Rob]

20 minutes ago, 1960maaan said:

The figures are ridiculous and I'm not sure if they're sustainable in the long term.  One thing to add to the Championship pot, I found an article that says Villa would get £87m over 3 years in the Championship, same goes for Newcastle and Norwich. If any or all of these teams get promoted inside that time the 'parachute' is then spread among the remaining teams. Not a small figure, relegation would have been troubling to say the least.

Pretty sure the premier league scrapped the redistribution of any unclaimed parachute payments (available after reading promotion) that were previously shared amongst championship clubs and elected to keep the money themselves.

Which was nice of them.

[1960maaan]

4 minutes ago, Bristol Rob said:

Pretty sure the premier league scrapped the redistribution of any unclaimed parachute payments (available after reading promotion) that were previously shared amongst championship clubs and elected to keep the money themselves.

Which was nice of them.

That's a bit shit didn't know that, obviously didn't get that memo. And yet not a great surprise.

[Major Isewater]

Football used to be about sport and sporting glory .

The amount of money is obscene.

I am proud to say that I have never subscribed to Sky or any other TV company who are responsible for changing the game that I love and distancing It further every day from the people  to whom it used to belong .

 

[cider-manc]

Parachute payments should be scrapped. If you can't get your finances in order when you get £100 million for coming last then you don't deserve help to do so. 

[Midred]

Please put me right on this one? As I read it Newcastle got £71miĺlion for winning the championship but whoever wins the playoff final will get £220miĺlion! Or is taking into account their income in the premiership? 

[downendcity]

I have no problem with rewards being there for successful teams, but the financial rewards for failure in the prem are ridiculous. As cider-manc says, if you get £100m for finishing bottom then why do you also need parachute payments?

It gives too much of an incentive for clubs at our level to make a conscious decision to flout the financial rules, as the rewards to getting to the prem completely outweigh any sanction for so doing - see QPR and Bournemouth.

[Bristol Rob]

3 minutes ago, Midred said:

Please put me right on this one? As I read it Newcastle got £71miĺlion for winning the championship but whoever wins the playoff final will get £220miĺlion! Or is taking into account their income in the premiership? 

I believe the 200mil includes first season Premier League money and the sum total of parachute payments.

[Midred]

Just now, Bristol Rob said:

I believe the 200mil includes first season Premier League money and the sum total of parachute payments.

Thanks, it did seem bizarre, but in the world of football...

[BobBobSuperBob]

7 minutes ago, Midred said:

Please put me right on this one? As I read it Newcastle got £71miĺlion for winning the championship but whoever wins the playoff final will get £220miĺlion! Or is taking into account their income in the premiership? 

£ 7.1   million Midred

Not £71 million 

[Septic Peg]

51 minutes ago, 1960maaan said:

The figures are ridiculous and I'm not sure if they're sustainable in the long term.  One thing to add to the Championship pot, I found an article that says Villa would get £87m over 3 years in the Championship, same goes for Newcastle and Norwich. If any or all of these teams get promoted inside that time the 'parachute' is then spread among the remaining teams. Not a small figure, relegation would have been troubling to say the least.

 

46 minutes ago, BobBobSuperBob said:

Good point 1960 - I didn't include Parachute payments

 

This is how Parachute Payments stood at the start of the season just finished ( Assume they will increase year on year)

Clubs get the following amounts over the three seasons.

In season one, 2016-17, £40 million

In season two, 2017-18,  £33 million

In season three, 2018-19, £14 million.

Does this mean then that we get a share of Newky's parachute payment? £47m divided by 24 = just shy of £2m.

2 minutes ago, Midred said:

Please put me right on this one? As I read it Newcastle got £71miĺlion for winning the championship but whoever wins the playoff final will get £220miĺlion! Or is taking into account their income in the premiership? 

I think that's premiership income plus money from tv coverage of both semi final legs, final itself, tickets, merch and payment for winning the PO, plus potential parachutes.

 

I personally think that if Newky got £71m for winning the champ, they should deduct the amount of the parachute for this season. Still making £31m.

 

Ridiculous money floating around...

[BobBobSuperBob]

Just now, Septic Peg said:

 

Does this mean then that we get a share of Newky's parachute payment? £47m divided by 24 = just shy of £2m.

I think that's premiership income plus money from tv coverage of both semi final legs, final itself, tickets, merch and payment for winning the PO, plus potential parachutes.

 

I personally think that if Newky got £71m for winning the champ, they should deduct the amount of the parachute for this season. Still making £31m.

 

Ridiculous money floating around...

Good point Peg - although ' only' £40 million is parachute payments but still best part of £2 million per club 

 

And Newcastle got £7.1 million not £71 million for winning the Championship

[Midred]

5 minutes ago, BobBobSuperBob said:

£ 7.1   million Midred

Not £71 million 

What's  £63million between friends?

[Mr Popodopolous]

It's a sign of the times.

Money being distributed more evenly now in Spain...but it sure didn't used to be! Real and Barcelona took the vast bulk of it all. Money disparities in Europe are highlighted quite well in this.

https://www.fourfourtwo.com/features/why-ajax-and-monaco-being-ripped-apart-typifies-threatening-future-uefa-are-building

In times past these thrilling young- and I know Ajax have had bumps in the road but only to be expected with a squad average age of 22.7! I digress though, in times past these two thrilling young sides would grow together and may well hit high heights. Monaco are already further along this road but Ajax got notable results such as 3-0 v Schalke and 4-1 v Lyon- both at home. No mean feat.

However such is the money swilling around now I cannot see it at all. Unless these two sides have been clever/lucky enough to have their young stars on reasonably longish contracts then they will just be in a cycle of consistent rebuilding- especially Ajax.

[Septic Peg]

6 minutes ago, BobBobSuperBob said:

Good point Peg - although ' only' £40 million is parachute payments but still best part of £2 million per club 

 

And Newcastle got £7.1 million not £71 million for winning the Championship

Yep. Soz. Just took the figure from Midred and didn't see your reply til after I posted.

[cidered abroad]

1 hour ago, BoneyardTIM said:

Good snooping Bob, It makes an absolute joke of football in this country. The richer get richer, the poorer get poorer. How is tv money distributed in europe?

So what is different to real life?