Newcastle United has gained promotion to the English Premier League 2017/2018 season. They achieved this by beating Preston North End 4-1. The club will now return to the Premier League just a season after it was relegated.
Newcastle are in line for a massive windfall after clinching automatic promotion to the Premier League tonight with a 4-1 win against Preston North End.
The Toon will return to the top flight at the first time of asking and still have an admittedly long shot of winning the Championship outright.
Many feel their squad will need an overhaul after being downsized last year – but they’re set to receive the funds to do just that, with £110 million now coming their way over the next 12 months, writes Newcastle Chronicle’s Mark Douglas.
That sum is made up of guaranteed Premier League prize money and an equal share of the record-breaking TV deals and commercial income from central sponsorship deals – and the huge sum has justified Newcastle’s decision to gamble on going with a big wage budget and overheads in the Championship.
United will bank just £7.1million for finishing second in the Championship – less than 10% of the amount that Sunderland will make for finishing rock bottom of the Premier League this season.
That blow will be cushioned by £40million parachute payments but if they hadn’t gone back up straight away, the club would have had to make big changes to its business model.
Going back up means they can count on massive increases in revenue for the 2017/18 season – and will hopefully give Rafa Benitez an opportunity to turn United into a credible Premier League outfit again.
Deloitte’s Sports Business Group estimate promotion will be worth £110million during the period of the current bumper TV deal – which runs until the 2018/19 season.
The exact distribution will be made clear when the Premier League release their prize payments after the end of the current season – the first in which the new TV deal kicks in.
That will reveal the incredible scale of the money available to top flight clubs now. Sunderland are estimated to be in line to make as much money as Leicester did for winning the title in 2015/16.
Overseas TV rights and domestic TV rights will be worth around £85million to EACH club. Prize payments and money for being on TV should bump that up way past the £100million for every club – with Sky guaranteeing every side will be on TV a minimum number of times.
Clubs get £100,000 for every home live game broadcast in the Championship – and £10,000 for every away game. In the Premier League it is ten times that – £1million per game and a minimum of £10million.
That is why promotion is so important to United.
Bouncing back at the first time of asking means that Newcastle will forego parachute payments that were due to them in the second and third year after relegation. That’s estimated to be £33million in year two and year three is around £14million.