7 May 2009Birmingham City promotion to boost finances of Championship clubs

Football Clubs News | Football Finance News | Football Leagues/ Association and Governance

The finances at a number of Championship clubs could be boosted next season as a result of Birmingham City winning promotion back to the English Premier League.

With Birmingham City having achieved promotion in their first season in the Championship following their relegation from the Premier League last season, the club will miss out on its second instalment of parachute payments.

Parachute payments are given to clubs relegated from the Premier League over the following few seasons to help them adjust to life without the television revenues they were previously receiving.

It is believed that Birmingham City was set to be given around £11.2 million from the Premier League for the 2009/10 season.

However, this money is now to be distributed to other Championship sides instead as a solitary payment.

Championship clubs are set to receive £400,000 each, while there will also be smaller payouts to League One and League Two outfits.

Meanwhile, another of last season's relegated teams Reading could still make an instant return to the Premier League via the play-offs, meaning that more parachute payments could be given to the rest of the league.

Wolverhampton Wanderers won the Championship this season, so will also be playing Premier League football in the 2009/10 season.

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