Football News Update: Challenges and Opportunities in the EFL

The 2022-23 season has seen an uptick in revenues for the Football League, but clubs across the EFL are still grappling with managing their cash requirements, according to Deloitte’s business sport group’s lead partner, Trevor Bridge.

“Many clubs are propped up by owner funding as they aspire to win promotion, but exiting the league at the wrong end exposes a club to instability,” Bridge said. “This makes a strategy for long-term stability critical, underpinned by appropriate support provided by the governing bodies.”

The Championship and Parachute Payments

In the Championship, approximately £200m [27%] of the revenue came from the five clubs receiving parachute payments after Premier League relegation in the previous three seasons. These clubs included Burnley, Watford, Norwich City, Sheffield United, and West Bromwich Albion.

The 2022-23 season saw champions Burnley, runners-up Sheffield United, and play-off winners Luton Town secure promotion, but they have since been relegated back to the Championship, meaning they will begin a new cycle of parachute payments next season.

EFL Revenues and Attendance

Overall, the EFL as a whole took a total of £1.1bn in 2022-23, with 19.8 million fans attending games across all three leagues for the year. The EFL fixtures for the 2024-25 season are due to be released on Wednesday at 09:00 BST.

The Road Ahead

As the football world continues to evolve, the EFL clubs will need to navigate the challenges of financial stability and long-term sustainability, while also capitalizing on the growing interest and engagement in the sport. The governing bodies will play a crucial role in providing the necessary support to ensure the continued success and growth of the league.

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