Championship Play-Off Final 2022/23

Glittering Prize

Quick financial comparison of the two clubs competing in the 2022/23 EFL Championship play-off final, Coventry City and Luton Town, using the latest available accounts (from the 2021/22 season).

Overview

On paper, the two clubs are pretty evenly matched. Coventry’s £18.1m revenue is slightly higher than Luton’s £17.7m, while their squad cost is £7.4m compared to Luton’s £5.5m. On the other hand, Luton’s £17.8m wage bill is higher than Coventry’s £15.7m.

However, what is abundantly clear is that both finalists are punching well above their weight, considering the financial power of many of their Championship rivals.

Revenue

In terms of revenue, both Coventry and Luton are towards the lower end of the table, well below the Championship average of £27m.

Those clubs recently relegated from the Premier League and thus benefiting from parachute payments have much more revenue, e.g. the highest in 2021/22 was Fulham with £72m, which is around four times as much as Coventry and Luton.

Match Day Revenue

Luton’s £4.9m match day revenue is higher than Coventry’s £4.3m, but both clubs are close to the Championship average of £4.9m. This is not too far away from the best in the division with only three clubs generating more than £6m a year, namely Nottingham Forest £8.7m, Fulham £6.8m and Middlesbrough £6.4m.

Commercial Revenue

Luton’s £2.3m commercial income is one of the lowest in the Championship, less than half of Coventry’s £5.0m. However, both clubs are far below the top clubs, led by Stoke City £16.6m, followed by Bristol City £15.8m and Fulham £14.0m.

Broadcasting Revenue

The real differentiator in the Championship is broadcasting income, due to the parachute payments awarded to clubs relegated from the Premier League, which are worth an estimated £44m in year one, £36m in year two and £16m in year three. As a result, Fulham, Sheffield United and WBA all enjoyed revenue of around £51m in 2021/22.

Other Championship clubs generally receive between £8m and £10m broadcasting income, mainly the EFL distribution £3.6m and Premier League solidarity payment £4.8m.

Luton £10.5m earned more than Coventry £8.8m, partly due to more televised games, including last season’s play-off semi-final.

Wages

Only three clubs in the Championship have reported lower wages to date than the play-off finalists, namely Blackpool, Hull City and Barnsley. Luton’s £17.8m wage bill is 14% higher than Coventry’s £15.7m, but there’s really not that much in it.

Both clubs are obviously much smaller than those in receipt of parachute payments, e.g. Fulham £90m and Bournemouth £61m. Their figures were inflated by hefty promotion bonus payments, as was also the case with Nottingham Forest £59m.

Squad Cost

Neither Coventry or Luton have spent much in the transfer market in the last few years, so the cost of their squads is very low at £7.4m and £5.5m respectively. Note: these figures are based on amounts paid per the club’s balance sheet (as opposed to market value).

This is in stark contrast to clubs that were recently competing in the top flight, who often manage to retain a decent squad in the Championship, even after some player departures.

In 2021/22 this included Fulham £197m and Bournemouth £151m, who both secured promotion. The third club that went up, Nottingham Forest, had a smaller squad cost, but their £17m was still more than twice as much as Coventry and Luton.

Conclusion

Given their financial disadvantages, both Coventry and Luton have massively over-achieved simply by getting to the Championship play-off final.

The winners of the game will see a dramatic increase in their revenue in the Premier League, which surely few will begrudge, given the trials and tribulations that they have suffered in recent years.