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Promotion to Top Tier Football: Worth the Efforts

May 28, 2024

Master in Football Business

That time of the season again: Promotions and relegations. Every season we see the fight for promotions intensify. The increase in revenue from all streams – broadcast, commercial and ticketing alike – apart from the associated increase prestige are the obvious reasons. In this post we will analyse the possible increase in revenues

Increase in Revenue

With available data from English Premier League, German Bundesliga & French Ligue 1, we calculate an average revenue for the two tiers respectively. Aside to the topic, unsurprisingly, the top teams in each league contribute significantly in the cumulative club revenues

  • Premier League: top 6 contribute 56%
  • Bundesliga: top 2 (Bayern Munich & Borussia Dortmund) contribute 37%
  • Ligue1: PSG contributes 40%

Each of the above top-tier league shows vast variations in averages when we include the top teams and otherwise

Promotion to Top Tier Football: Worth the Efforts - SBI Barcelona

In all likelihood, the promoted clubs would take an average revenue closer to the average without top teams. That would account for the jump as per the chart

Promotion to Top Tier Football: Worth the Efforts - SBI Barcelona

The chart shows the extent of possible jump in revenues

  • English football: 6X, approx. €140+mn
  • German football: 5X, approx. €150+mn
  • French football: 6X, approx. €70+mn

Ipswich Town: Heading to the Premier League

Ipswich Town has scripted a dramatic return to the Premier League after 22 years and back-to-back promotions, As mentioned above, with this jump comes a host of benefits, both to the club as well as the town. A local business leader has said that ‘this promotion could ensure somewhere between £500 and £600 million worth of economic benefit to the area’

We look at the different aspects of the clubs at the current moment, which is definitely going to change in future

  • Revenue generated in 2022/23: £19.8mn (in League One). It could rise to above £25mn in 23/24 (Championship) while zooming over £100mn in Premier League in 24/25
  • Current social media followers: a combined total of 1.26mn (Facebook, Instagram, Twitter /X, YouTube, TikTok
  • Kit sponsor: signed with Umbro in 2022
  • Shirt Sponsor: Singer Ed Sheeran who has been the shirt sponsor from 21/22 to 23/24 and has indicated intention to continue the sponsorship as the club plays in Premier League too. The entry to Premier league could also see Ipswich Town gather several other new sponsorships too
Promotion to Top Tier Football: Worth the Efforts - SBI Barcelona

Conclusion

Promotions to the top tier football is a goal for every club playing in the second tier and below. Not only does it come with a host of benefits for the club/ team but also brings a reputation to the city as well. We have seen some incredible success stories in this year across multiple leagues like Ipswich Town, St. Pauli in the German Bundesliga, Como in Serie A and so on. This is what makes European football the most engaging and inclusive!

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