Clyde1998Fezza Historically there is a massive drop in revenue for clubs in League one, the Athletic did a good piece on Wednesday a few years ago:
https://theathletic.com/2434618/2021/03 ... nesday-8m/
That is a club which has generally attracted far bigger crowds than Reading. Without the solidarity payment or the TV revenue we'd be reliant on matchday income, I can only see our current financial plight getting worse, that's with an owner who has already caused two clubs to cease to exist.
I really hope I'm wrong, but the future doesn't look great if we're relegated.
From what I can work out, the TV revenue for each division (assuming no parachute payments) are:There's an additional ~£275k in parachute payments following relegation from the Championship for a single season.
- Championship - £7m+ (£2.5m from the EFL + £4.5m from the Premier League + up to £100k for home TV matches + £10k for away TV matches)
- League One - £1.322m (£677k + £645k)
- League Two - £902k (£472k + £430k)
It seems the vast majority of that £8m drop (around £6m) comes simply from the smaller broadcasting payments. Looking at a lot of clubs, their attendances don't fall a huge amount following relegation (some see increases) should the club not completely fall through the floor; Ticket prices would be lower however - an average of a £5 drop in match day revenue per ticket sold for a club like Sheffield Wednesday (around 23,000 attendances in the Championship) would be worth around £2.6m over twenty-three league matches.
With our costs rapidly reducing in the Championship, and likely to reduce even further next season (regardless of what division we're in), due to EFL sancations, we may not be in as bad a financial position following relegation than a lot of other clubs who've become established in the Championship (or we would've been a few seasons back).
We've been told we have one of/ the lowest wage bills in the Championship. Assuming that's true, which it surely is, if Wigan and Rotherham can yo-yo on that sort of budget and above with L1 income, there's no reason for it to be catastrophic for us. Especially as we have better attendance than either.