For Premier League football clubs that end up in the big 6, winning or finishing in one of the top positions means getting a good portion of the prize money. This is not an insignificant sum we’re talking about here – the amount is normally somewhere in the region of £150 million!
Following the 2018/19 Season, clubs received a payment generated by TV & Commercial Revenue, Facility Fees, as well as their position in the league (i.e. merit payments).
Whereas some shares are equally distributed between the clubs, the final sum that each club gets from merit payments and televised matches varies. For instance, the money generated from International TV rights is paid out equally to all clubs, whereas income from matches broadcast in the UK and merit payments vary from team to team
2018-19 Season Prize Money Breakdown
The below is a quick breakdown of how last season’s Premier League Prize Money was distributed between the big 6: Manchester City, Liverpool, Chelsea, Tottenham, Arsenal and Man United:
● Equal Share – 50% was shared equally between all teams, whereby each team got £34m.
● Facility Fees – 25% was shared based on the number of matches televised in the UK. Every side got a guaranteed sum of £12,312,666, even if less than 10 of their games where aired. However, for each game over ten, the rest of the teams got an extra £1,129,879! (Talksport).
So although Liverpool finished second last season, they got a greater share than Manchester City due to the fact that they were in 29 televised matches as opposed to City’s 26.
● Merit Payments – 25% is based on finishing position, with each team earning around £2m more than the one that placed lower.
● Central Commercial revenues were equally shared, totalling £5m per team.
● International broadcasting revenues were also equally shared, amounting to a payment of £43m per team.
The prize money won from the Premier League helps clubs balance out their wage bills, as players demand exceedingly better contracts and higher wages.
Other sources of income for Premier League teams
Besides the Premier League Prize Money, the teams also generate income from other competitions such as the Europa League and the Champions League. The individual clubs also get extra income from sponsorship deals, with betting sponsorships being one such example.
Sportsbooks attempt to get these sponsorship deals to promote Premier League online betting. This source of income is up for debate, with regulators saying that it is aggravating the widespread problem of gambling addictions in the UK.
That said, this season only three clubs have no gambling sponsors. Major clubs such as Manchester United, Manchester City, Leicester City, Arsenal, and Liverpool have official partnerships with leading sportsbooks such as Bet365, Betway, and 1×2 Bet. In fact, the Guardian has estimated that Premier League clubs will earn £349.1m from shirt sponsorship deals alone this season if things go as planned.