Whether you’re a fan, player or manager, there’s one thing everyone has in common - you do not want to see your team relegated from the Premier League. That said, and personal feelings aside, the consequences run far deeper, mainly financially.
Dropping into the Championship can affect all parts of the club, from revenue streams to squad stability. Not to mention, the bigger the club, the more there is to lose, sending the stakes sky high.
It’s no secret that there is some serious money to be made in football. The other side of that coin is that there is plenty to be lost. For bigger clubs, the financial impact of relegation is expected to sit between £200m and £250m in losses, with the largest hit coming from broadcast revenue. There is simply more money to be made on Premier League TV, with earnings often exceeding £100m per season, creating an immediate financial gap as Championship TV income sits significantly lower.
Outside the Premier League, sponsorship deals decrease in value, but playing in the Championship League also provides less global visibility and media exposure. The result? Less money to be made through commercial revenue as advertisers and partners just aren’t willing to pay the big bucks (in retrospect, of course). If relegated, clubs will also see lower ticket demand and reduced international fan interest, which means a potential drop in matchday income to consider, too.
Some of the damage starts right at home with relegation directly affecting the squad. Premier League wages are typically very high, so dropping to the Championship can result in key players being sold or relegation wage reductions being triggered. Not only does this create weaker squad depth and quality, but it’s a real shake-up for fans who’ve grown to love their team.
The impact isn’t always immediate; eventually, clubs may see their value decline, making it much harder to attract investors and sponsors. And once financial instability starts, it can be difficult to get a hold of, so tension may not be exclusive to just one season. Plus, growth in the Premier League is fast-paced and apparent, so even one year out can have lasting effects that are hard to lose.
Once clubs are out, it’s a vicious cycle that is hard to break. From financial losses and a weaker squad, it can be hard to get back on their feet, making promotion tougher. So, with relegation never something on the cards, it’s no wonder Premier League teams feel the pressure to remain on top.