As the Premier League season nears its thrilling conclusion, the battle for the title and the fight to avoid relegation intensifies, with mega prize money at stake for each participating club.
Manchester City, Arsenal, and Liverpool are currently in contention for the coveted Premier League title, with the previous season’s champions, Manchester City, setting a record by earning £176.2 million for their triumph.
This substantial sum is derived from the distribution of funds generated by the Premier League’s domestic and international television rights agreements.
Each of the 20 Premier League clubs receives a total allocation based on various factors, including equal share payments, merit payments based on final league standings, fixed commercial revenue payments, and variable facility fees, awarded for matches broadcast live in the UK.
At the conclusion of the season, the Premier League disburses financial rewards to all participating clubs, providing crucial support for future transfers and club development initiatives.
While the exact figures for the 2023/24 season are yet to be confirmed by the Premier League, merit payments are typically distributed on a sliding scale, with the champions receiving the highest allocation and the bottom-placed team receiving the lowest.
In the 2022/23 season, the Premier League champions were estimated to have received approximately £44 million solely from the league, with additional sponsorship bonuses, TV revenue, and other bonuses elevating the total figure to nearly £150 million.
Although the financial disparity between each league position is relatively small on average (£2.5 million), the overall impact is significant, particularly concerning European qualification and relegation.
For instance, while the difference in prize money between fifth and fourth place is approximately £2.2 million, the disparity in revenue between Champions League qualification and missing out exceeds tenfold.
Additionally, clubs facing relegation from the Premier League (18th to 20th place) receive parachute payments to mitigate the financial challenges associated with demotion.
These payments amount to 55% of the equal share of broadcast revenue in the first year post-relegation, 45% in the second year, and 20% in the third year.
Based on the prize money distribution from the 2022/23 season, Manchester City earned £62.3 million for their title-winning campaign, with each league position valued at approximately £3.1 million.
Conversely, Southampton, relegated after a decade in the top flight, received £3.1 million for finishing at the bottom of the league table.
Another component of Premier League prize money is the facility fees, determined by the number of times each team’s matches are televised throughout the season.
Manchester City maintained their dominance in facility fees, earning £25.3 million from their televised matches in the UK last season.
Intriguingly, Everton secured £19.4 million in facility fees, ranking eighth highest in the Premier League, despite finishing 17th in the league table.
The Premier League prize money for the 2022/23 season, awarded per position, varied as follows:
Manchester City: £62.3 million
Manchester United: £59.8 million
Liverpool: £57.3 million
Arsenal: £54.8 million
Chelsea: £52.3 million
Tottenham Hotspur: £49.8 million
Leicester City: £47.3 million
West Ham United: £44.8 million
Wolverhampton Wanderers: £42.3 million
Brighton & Hove Albion: £39.8 million
Southampton: £37.3 million
Crystal Palace: £34.8 million
Newcastle United: £32.3 million
Aston Villa: £29.8 million
Leeds United: £27.3 million
Burnley: £24.8 million
Everton: £22.3 million
Watford: £19.8 million
Norwich City: £17.3 million
Brentford: £14.8 million
These figures are based on the Premier League’s distribution model, which takes into account various factors such as equal share payment, merit payment based on final league position, commercial revenue payment, and facility fees payment.
