The gap between the Premier League and the Championship is now "an abyss"

[chaileyjem]

Swiss Ramble has written another fantastic , graph heavy post on the finances of football. This time the implications of the new £5bn Premier League TV deal.
There's a fascinating section devoted to the gap between the Prem and the Champ in terms of finance where SR argues the existing large gap between the Champ and the Prem is likely to "become an abyss".

He also argues that TV income in 2016/17 will be an average of 92.4m per club per year in the Prem (Bournemouth ?) , an average of £38m for a Parachute Payment/Champ club (Burnley ?) and £8.7m for a normal Champ club - (the Albion ?)

via
that http://swissramble.blogspot.co.uk/2015/02/the-premier-league-tv-deal-master-and.html

 

[Triggaaar]

What are £ mins?

 

[Mo Gosfield]

Although the percentage share that the Championship gets v the PL actually increases ( 7% up to 9% ) the actual monetary gap widens even more ( 57.6m up to 83.7m ) Thats a 45% increase in monetary difference!
Abyss suggests immeasurable depth/bottomless. Maybe ' chasm ' would have been better. ( Whatever the term, its a bloody big gap )

 

[Moshe Gariani]

A naïve viewing of these data make me feel that it is quickly going to become nearly impossible to break into what will be a "cartel" of established Premier League and YoYo clubs...

I wonder what price Tony Bloom would make us to achieve promotion to the Premier League within the next five years.

7/1? More? Less?

 

[Biscuit]

Palace are the right side of the divide. At our expense.

Gutting.

 

[KZNSeagull]

A naïve viewing of these data make me feel that it is quickly going to become nearly impossible to break into what will be a "cartel" of established Premier League and YoYo clubs...

I wonder what price Tony Bloom would make us to achieve promotion to the Premier League within the next five years.

7/1? More? Less?

Assuming of course that the clubs coming down find it easier to go straight back up, which hasn't really been the case up until now. There is still hope, but it is going to get more difficult, that is for sure.

 

[The Camel]

A naïve viewing of these data make me feel that it is quickly going to become nearly impossible to break into what will be a "cartel" of established Premier League and YoYo clubs...

I wonder what price Tony Bloom would make us to achieve promotion to the Premier League within the next five years.

7/1? More? Less?

I would have the biggest bet of my life at 7/1.

I would make it quite long odds on.

 

[shaolinpunk]

What are £ mins?

I believe that's mlns, not mins. As in millions.

 

[Moshe Gariani]

I would have the biggest bet of my life at 7/1.

I would make it quite long odds on.

That doesn't surprise me. I understand how the probabilities work and thought the real price might be much shorter (I also have confused in my mind prices to win the league and prices to be promoted).

What price do you think we'll be to go up at the start of next season? And then the following season, assuming 3 teams have come down with £50m parachutes...?

Long odds on to make the PL in 5 years sounds very encouraging at the moment!

 

[Plastic-Fantastic]

As the years go by, it becomes more and more clear that missing out on promotion in 2012/2013 was a once in a generation opportunity!

 

[gordonchas]

A naïve viewing of these data make me feel that it is quickly going to become nearly impossible to break into what will be a "cartel" of established Premier League and YoYo clubs...

Fulham were an "established" PL club and received over 60 million in TV revenue last season, as did Cardiff. How's that working out for them this year?

Wigan still had the advantage of a 24 million parachute payment. Yo-yo? Still on the downswing by my reckoning.

Why anyone thinks this new money deal will make the slightest difference is beyond my comprehension. It will make the finances of all football clubs outside the top six more precarious in the long run, but that's a different story.

 

[chaileyjem]

As the years go by, it becomes more and more clear that missing out on promotion in 2012/2013 was a once in a generation opportunity!

Why doesn't last year count ? We should have won that first leg v Derby...

 

[Pavilionaire]

There are so many implications of the £5billion megadeal but one of them that will affect the Albion is wages for loan players.

Those Championship clubs receiving parachute payments will be able to pay lower tier Prem salaries (but, by comparison, huge Championship salaries) for decent, young prospects like Ibe, Ince, Kane, Teixeira, Lingard. We'll struggle to get the prospects from Man Utd, Liverpool, Chelsea and the like that we've had before because those clubs will want the loanee club to be covering a bigger share of the wages AND being in a promotion-contending team.

The advantage for the Prem clubs here is that if the loanee proves integral to the promotion-gaining Championship club then the parent will be able to turn a quick profit if they opt to sell to the promoted club now awash with newly-acquired Prem TV money.

 

[Moshe Gariani]

Fulham were an "established" PL club and received over 60 million in TV revenue last season, as did Cardiff. How's that working out for them this year?

Wigan still had the advantage of a 24 million parachute payment. Yo-yo? Still on the downswing by my reckoning.

Why anyone thinks this new money deal will make the slightest difference is beyond my comprehension. It will make the finances of all football clubs outside the top six more precarious in the long run, but that's a different story.

I think the massive difference in the new amounts of money going into the Premier League clubs will make a difference.

PL clubs will gradually get collectively stronger and more financially resilient than they have ever been. The lower ranked ones will also get cleverer about how they handle their occasional relegations and immediate re-promotion bids.

One or two clubs have spectacularly cocked it up recently but this feat will be progressively harder to achieve in the future.

 

[Pavilionaire]

Fulham were an "established" PL club and received over 60 million in TV revenue last season, as did Cardiff. How's that working out for them this year?

Wigan still had the advantage of a 24 million parachute payment. Yo-yo? Still on the downswing by my reckoning.

Why anyone thinks this new money deal will make the slightest difference is beyond my comprehension. It will make the finances of all football clubs outside the top six more precarious in the long run, but that's a different story.

The difference is the clubs you named built up huge debts whilst in the Prem that the TV money failed to cover. Now because the megadeal is so much bigger than before Prem clubs should still be better off, even if an extra two-third of the new money was spent on wages. Clubs that were losing £10-£15 million a year should now be able to break even.

Not too long ago the likes of Hull, Swansea and Burnley were lucky to be in the Championship, let alone the top flight. Now it is difficult to see a future for them outside the top two divisions.

 

[gordonchas]

The difference is the clubs you named built up huge debts whilst in the Prem that the TV money failed to cover. Now because the megadeal is so much bigger than before Prem clubs should still be better off, even if an extra two-third of the new money was spent on wages. Clubs that were losing £10-£15 million a year should now be able to break even.
.

You are kidding, right? This argument has been used every time the TV deal is increased over the past 20 years. As there are at least 10 clubs which start every season with the possibility of relegation all this ever guarantees is wage inflation. The losses will get bigger.

 

[Plastic-Fantastic]

Why doesn't last year count ? We should have won that first leg v Derby...

It does count I suppose, but I feel the squad was were stronger the year before and we should have beat Palace, whereas we were always less likely to beat Derby over two legs

 

[Tory Boy]

How are Reading and Wigan doing? Relegated two seasons ago.

How are Cardiff, Fulham and Norwich doing? Relegated last season.

TB

 

[Pavilionaire]

You are kidding, right? This argument has been used every time the TV deal is increased over the past 20 years. As there are at least 10 clubs which start every season with the possibility of relegation all this ever guarantees is wage inflation. The losses will get bigger.

I don't agree because this deal has effectively "raised" the stake and the other European clubs with their respective TV deals simply can't compete. Crazy as it may seem the likes of Inter Milan, AC Milan, Marseille, Dortmund and Atletico Madrid face being outbid on wages by Burnley, Hull and Swansea.

 

[Mo Gosfield]

Well...the PL was set up to protect the interests of its members ( particularly the big fish ) and its sure as hell doing that. I think we all knew that 12-13 was our big chance and we blew it. We now have a squad that is going to get 25-30 less points than that season....ouch!