Leeds and Burnley have now managed to shake off Sheffield United and secure automatic promotion to the Premier League.
An emphatic 6-0 win over Stoke on Easter Monday saw Leeds return to the Premier League after two seasons in the Championship, while a 2-1 win for Burnley over Sheffield United secured an immediate return for the Clarets, who suffered relegation under Vincent Kompany last term.
Scott Parker has already secured millions for Tottenham in getting Burnley promoted, triggering the permanent signing of Marcus Edwards, which lands Spurs some cash due to a sell-on clause.
Now, Burnley – and Leeds – have earned Tottenham and the other 19 Premier League clubs some additional cash after winning promotion.
Parachute payments now divided up between Premier League sides
As you may already know, parachute payments exist to help clubs who have been relegated from the Premier League cope with the signifiant loss in revenue from broadcasting deals, with payments made across three years.
However, there is now a surplus of cash after Leeds – who tried to hire Arne Slot – and Burnley went up, as neither side have been in the Championship for those three years of parachute payments.
On Monday, Football finance expert Kieran Maguire wrote on X (previously known as Twitter): “When Leicester and Southampton were relegated in 2022/23 and promoted the following season £102m in parachute payments were saved…these savings have been split between Premier League clubs.
“Should Burnley and Leeds be promoted today then a further £51m will be saved…this will also be divided between PL clubs.”
Maguire added: “Instead of receiving parachute payments of £35m and £16m next season Burnley and Leeds will both be picking up £110m plus in the Premier League. The parachute payments not being paid out will be divided by the 20 PL clubs.”
How much each Premier League clubs receives
It means each Premier League side involved in the 2024/25 campaign will receive £2.55m each after Leeds and Burnley were promoted, on top of the £5.1m Leicester and Southampton earned them, as aforesaid.
Of course, in the grand scheme of modern day football in the Premier League, £2.55m is not a great deal of money, but it is sure to be a welcome boost to all 20 clubs who may not have been expecting a minor financial boost.
There is – however – the moral argument of this cash trickling down and being spread between Championship clubs, who are in greater need of the money than those in the Premier League.