The Birmingham City deals which are threatening to change the Championship order
Birmingham City are back in the Championship with deeper pockets than ever before under Knighthead
Tom Wagner has been unwavering in his belief that Birmingham City are in the position to compete financially with every team in the Championship – even those in receipt of parachute payments.
In each of the last five seasons, two of the three teams promoted from the Championship have been benefitting from parachute payments.
It equates to around £50 million in the first year before gradually decreasing in years two and three.
Unusually, there will only be four teams receiving parachute payments in the Championship next season. In addition to the three clubs relegated from the Premier League, Sheffield United will also benefit from another lump sum after losing the play-off final to Sunderland.
Addressing that, Blues chairman Wagner told BirminghamLive: “Our goal is to generate as much revenue as (clubs with) parachute payments do, but without having received parachute payments, so ultimately we want to be in a position where we don’t care how many parachute clubs there are because we’re generating the same level or more than they are.”
The R word – revenue, not relegation – has become a buzzword during Knighthead’s tenure as owners of Blues. They have explored every possible avenue to increase revenue.
Through fan parks, match day street food options and corporate hospitality, Knighthead have made St Andrew’s a place where supporters want to be for more than 90 minutes.
Match receipts for the financial year ending June 2023 were £3.7m, compared to £6.1m in Knighthead’s first season at the helm. The average gate increased to 26,326 last season, from 21,180 in 2023/24, so that figure will increase significantly for the next financial year.
Then there’s commercial revenue. The last accounts showed Blues made almost £13m in commercial revenue in 2023/24, more than double the £6.2m they banked in 2022/23.
Since then, Delta Airlines – whose operating revenue for 2024 was a staggering $61.6 billion – Vertu Motors and Coral have all joined Nike and Undefeated on board.
The documentary charting the club’s record-breaking season will air on Amazon Prime this summer and that will see Blues rake cash in. And, as the story gets bigger, the price of entry for commercial partners will too.
It goes without saying that Blues’ commercial revenue increased in 2024/25, despite their League One status, and it will again next season.
Reach’s Business of Football reporter Dave Powell told the Keep Right On Podcast: “It’s very difficult to put exact figures on them because there are lots of different caveats attached to how well commercial partnerships do, even down to kit supplies, promotion, or how much you feature in TV broadcasts.
“However, we can look at some of the more recent deals that have been struck. Everton’s stadium naming rights with Hill Dickinson is worth around £10million per year roughly.
“There’s fair market value for clubs attached to sponsorship deals, you can’t just come in and receive a cheque for £500m from a company associated with someone who owns your club, but what you can do is build a partnership over time which really becomes valuable.
“Things like the Delta deal. When Birmingham reach the Premier League, expect a significant uplift in the value of the deal.
“It’s hard to put a figure on it but that £13m they got in the year ending June 2024, it doubled from 2023, so I would imagine they are probably going to be pushing £20m in commercial revenue for 2024/25 and that’s being conservative.”