In any sporting hierarchy, the top tier is always going to generate a significantly larger amount of cash compared to the lower divisions.
In this regard, English football isn’t any different. While the Premier League is in a world of its own, Football League clubs can only earn a fraction of what the top clubs in the country receive each season.
Nevertheless, the Championship remains arguably the most exciting second-tier competition in European football, and its participants earn decent amounts in comparison to its counterparts around the Old Continent.
So how much do Football League clubs earn from TV money? How is it distributed between the participants? And does the Premier League contribute to these amounts?
Let’s find out.
Do EFL Clubs Receive Money from the Premier League?
The short answer is yes, English Football League clubs do receive money from the Premier League. This either comes as parachute payments or in the form of solidarity payments.
As explained in another study from SQaF, a parachute payment is a fee that a former Premier League club clubs receives following relegation. This amount helps the team in its adjustment after seeing its revenues massively decreased and covers the wage bill.
In the first year following relegation, the club receives a parachute payment worth 55% of EPL’s equal share of broadcasting rights, which is worth approximately 42.6 billion pounds. In the second year, the amount decreases to 45%, and then 20% on the third and final year.
On the other hand, Football League clubs that do not receive parachute payments will instead earn a solidarity payment. Each Championship side receives 4.5 million pounds, with League One clubs each earning 700,000 pounds and League Two teams collecting 470,000 pounds.
This amount is provided by the Premier League’s TV money deal, and it aims to reduce the major gap between the top tier and the rest of the pool; An unlikely outcome, but nevertheless, a generous offer.
Football League vs Premier League: TV Money
Obviously, the Football League and the Premier League are on two different galaxies when it comes to TV money. So let’s try to capture the vast gap between the top tier and the Championship in the table below.
|TV Money (£)||Championship||Premier League|
|Equal Share||2.5 million||77 million|
|Facilities (per appearance)||Between 10,000 and 100,000||1.1 million|
|Merit Payement||N/A||Between 2 million to 38 million|
|Total (per season)||330 million||2.3 billion|
Football League TV Money Distribution
In addition to the sum granted by the Premier League’s TV deal, each Championship club also receives 2.5 billion pounds as an equal share from EFL’s own TV money.
Moreover, clubs also receive an amount for every broadcasted match on Sky Sports, varying between 10,000 and 100,000 pounds. While the away side usually earns £10K, the home team could receive up to £100K depending on the time slot.
Unlike the Premier League, Football League clubs don’t receive a share based on merit (meaning a sum that depends on each team’s final position in the table).
How Much Do Championship Clubs Get from TV Rights?
According to Swiss Ramble, a Championship club receives an average between 7 and 8 million pounds per season from TV rights.
This figure includes the solidarity payment received from the Premier League’s TV deal (£4.5m), the equal share payment from Football League’s own TV deal (£2.5m) plus the amounts received from each broadcasted match (between £10K and £100K).
But of course the average mentioned above doesn’t apply to clubs who were relegated from the Premier League in the previous three seasons, as those sides can earn up to 42.6 million pounds from parachute payments alone.
Championship TV Money Distribution
The Championship’s TV money is equally distributed amongst all participants in the league, with each side collecting a share worth 2.5 million pounds.
Moreover, a Championship club would earn a figure between 10,000 and 100,000 pounds for every broadcasted match on British television.