Football finance expert Kieran Maguire has been discussing the £8m charge from the Premier League that Leeds United are facing.
As stated in early July, the Premier League will charge newly promoted clubs £8m each next season and in the following term to ‘soften the blow’ of lost broadcast revenues due to the current viral outbreak (per The Guardian).
Supposedly, this charge caused ‘outrage‘ amongst the clubs that had hopes of going up at the time – which ultimately ended up being Leeds, West Bromwich Albion and Fulham.
So, in the latest episode of The Price of Football podcast, Maguire discussed the charge that the promoted clubs are facing from the Premier League.
He said: “Their proposal is that the rebate is going to be split between 2020/21 and 2021/22, i.e. over the next couple of seasons. So, that’s going to work out at around about £8m per club who is in the Premier League in respect of those two seasons.
“Of course, in 2020/21, that’s going to include Leeds United, West Bromwich Albion and Fulham. So, you can understand the fans feeling a bit sore about that.
“At the same time, they have been promoted and their TV income’s going from £7m a year to £100m, so, they are losing out a little bit, but they’re gaining far more from promotion.
“If you take a look at the money that they’re making from commercial deals, I was talking to somebody at a club who’d been recently promoted and they said their commercial income went up by a factor of 10.”
TIF Thoughts…
So, seemingly Maguire believes that the boost to the Whites’ income after being promoted to the Premier League will far outweigh the cost of the charge.
Do you think it is fair that Leeds are being charged £8m by the Premier League?
No, it's really unfair
Yes, seems fair enough
However, as stated in The Guardian’s report, it does seem somewhat unfair that this season’s promoted clubs are being charged for something which happened during a season where they were not in the top flight.
The rebates which the Premier League has been forced to agree to with broadcasters does stand at a whopping £330m, though, so, it is understandable that they need to find that money from somewhere.