by Clyde1998 »
19 Jun 2024 15:45
tmesis Snowflake Royal Brogue
Why is the operating costs too much in league 1 compared to championship? What revenue are we missing out on being a division below? We signed our long term sponsorship deal with scl whilst in the champ. Ticket prices increased last season, and we had a higher average attendance. Genuine question, what are we missing out on? What’s the difference between championship prize money and league one, and what is the difference in TV rights between champ and league one. As they seem to be the only two things that could be different.
TV money is vastly different for a start.
Income in the Championship is roughly £14m - £16m a season. In L1 we haven't seen the accounts yet, but somewhere between £8m and £10m seems about right. A Cat 1 academy costs about £2m a year.
There's a reason only us and Derby had one in L1, iland it's because we didn't immediately downgrade on relegation in the hopesof bouncing back.
I'm sure I've seen stuff implying a Category 1 academy is closer to £5 million a year in total.
I've seen that too, but it's been unclear whether they were talking about £5m total or £5m more than having a Cat2 academy.
The initial costs were suggested to be between £2.3m and £4.94m, according to the
Premier League's plan for Cat1. Cat2 was between £1.020m and £1.775m; Cat3 was between £315k and £540k and Cat4 was £285k.
The big financial differences between a bottom Cat1 and a top Cat2 academy is in coaching costs and accommodation and travel (I'm guessing the latter being lower is due to the more regionalised nature of Cat2). Between those two factors, a club would spend around £500k less by being Cat2. Simply employing staff seems to be over 60% the cost of an academy at any category.
Some of costs in the document have likely ballooned due to inflation (both general and of football players/staff wages). It's possible it's £2m more than Cat2 and £5m in total at the moment.
If it is £5m in total, that's going to be at least half our revenue - unless we're selling players coming through the academy for decent fees regularly, that's far too large for a League One club.
That said, there's also a grant for having a Cat1 academy (smaller grants for other categories) which would offset some of these costs.