Luton Town’s $200 Million Premier League Promotion
Huddle Up is a 3x weekly newsletter that breaks down the business and money behind sports. If you are not already a subscriber, sign up and join 100,000+ others who receive it directly in their inbox each week. Today At A Glance:Luton Town won “the richest game in football” on Saturday, beating Coventry City in PKs to secure a $200 million-plus promotion to the Premier League. So today’s newsletter breaks down everything you need to know, including the club’s history, the finances behind its promotion, and the future of its (now iconic) stadium. This newsletter is also available via podcast on Apple or Spotify. Enjoy! This Newsletter is Sponsored By ButcherBox!
I’ve been ordering from ButcherBox for a few years now, and it’s the single best solution I’ve found to save time while guaranteeing the quality of your food. ButcherBox delivers 100% grass-fed grass-finished beef, free-range, organic chicken, humanely raised pork, and wild-caught seafood directly to your doorstep. Yes, it’s literally that easy — and it tastes incredible! So ditch the butcher lines today and guarantee the freshness of your meat with ButcherBox. And here’s the best part: If you sign up today, ButcherBox is offering all Huddle Up readers 2 lbs of ground beef for FREE every time they order over the next year. So sign up using the link below, and everyone in your household will thank you later. Friends, Luton Town FC is one of the best stories in sports. The 138-year club, located 30 miles northwest of London, was acquired for just $7 in 2003. The owners only lasted 55 days, though, pushing the club near bankruptcy and nosediving them into the fifth division of English Football — a league comprised of professional and non-professional teams. The club’s infrastructure has become a bit of a joke, too. Luton’s previous ground was next to a railway line, and the team was forced to move after players and fans regularly complained about being unable to see the ball because of smoke from the train. And their current stadium, Kenilworth Road, isn’t much better either. For example, it was built in 1905 and is over 120 years old. It also sits just 10,356 fans — there are 75 high school football fields in Texas with more seating capacity — and many fans must walk through houses to enter the stadium on game day.
But this is ancient history because Luton Town is headed to the Premier League. Luton Town beat Coventry City on PKs at Wembley Stadium on Saturday, winning “the richest game in football” and securing themselves at least $200 million in additional revenue by earning a promotion to the top flight of English Football. Luton Town FC Annual Revenue
Luton Town has now gone from the 5th division to the 1st in just nine years, becoming the first team in history to make it from the amateur league to the Premier League in less than a decade.
Of course, Luton Town’s promotion is a bit of an anomaly. Many clubs in the Championship spend more money than they make, sinking themselves into millions of dollars of debt on the off chance they can outspend their opponents to win promotion. But Luton Town didn’t follow that blueprint. They don’t have a celebrity owner or an Oil-rich Gulf state backing them. The team spent just $9 million on wages this past year — roughly 1/3 the money spent by fellow Championship clubs Burnley ($32 million) and Watford ($33 million) —and only have one player making $1 million. EFL Championship Wage Bills (2022-23)
So while everyone else zigged, Luton Town zagged. And it paid off tremendously. Luton Town will now earn *at least* $200 million in additional revenue across the next three seasons, even if they get relegated back to the Championship next year. This is because the worst team in the Premier League earns significantly more in media rights than the best team in the Championship. Norwich City, for instance, received nearly $125 million in TV money last year for finishing last in the Premier League, while Fulham earned just over $10 million in TV money for winning the Championship. 2023 Broadcasting Rights By League
And this increase in revenue also includes $70-$80 million in parachute payments if Luton gets relegated the following season, according to Deloitte’s Sports Business Group. The Premier League makes these payments to relegated clubs (for up to three years) to help them adapt to reduced revenues back in the Championship. Luton Town’s Financial Outlook
But if Luton Town can stay in the Premier League for even two years, they would be looking at a financial windfall in excess of $360 million, according to Deloitte. Ps. This is Pelly Ruddock Mpanzu. He is a former West Ham Academy graduate that joined Luton Town on loan in 2013. He was shocked upon arrival when he discovered that Luton trained on a public field where residents walked their dogs. But he stayed with the club and is now the only player in history to go from the non-league to the Premier League with one club.
Now, not all of this is picture-perfect. Luton Town will have to spend about $10 million on upgrades to get its stadium up to Premier League standards — replacing seats, widening the broadcast area, installing flood lights, etc. — and their expenses will also drastically increase alongside 2023 revenue (player salaries, travel, etc.). But the bottom line is clear: Luton Town’s rise from the 5th division to the 1st (in just nine years) is precisely what makes the English Football Pyramid so great. The system allows clubs to progress and compete at higher levels as they grow, while also providing opportunities for grassroots soccer to flourish. But more importantly, the English Football Pyramid doesn’t care who you are, where you come from, or even how much money you have. Anyone can win, and when you win, you are rewarded — personally, professionally, emotionally, and financially. If you enjoyed this breakdown, please consider sharing it with your friends. My team and I work hard to consistently create quality content, and every new subscriber helps. I hope everyone has a great day. We’ll talk on Wednesday. Interested in advertising with Huddle Up? Email me. Your feedback helps me improve Huddle Up. How did you like today’s post? Loved | Great | Good | Meh | Bad Want More Detailed Sports Business Breakdowns? Subscribe To JPS.The Joe Pomp Show is a 3x weekly podcast where I break down the business and money behind sports. Think of it as the same high-quality work you read here, just deeper. There are also exclusive interviews with people like Dana White, Lance Armstrong, and Troy Aikman, and you’re guaranteed to learn something. Huddle Up is a 3x weekly newsletter that breaks down the business and money behind sports. If you are not already a subscriber, sign up and join 100,000+ others who receive it directly in their inbox each week.
|
