Even after parachute payments, Sheffield United could be down £57m next season if they’re relegated.
A return to the Championship is not yet confirmed, but has been widely accepted by most people involved with the club.
It follows a disappointing second year in the Premier League.
The Blades are bottom of the table and 15 points from safety with just eight matches remaining.
It’s well known that clubs in the top flight benefit financially more than those in the second tier. This is largely thanks to broadcasting revenue.
Yet a new report from Swiss Ramble delving into United’s 2019/20 accounts reveals just how much it could cost the club.
The specialist on the business of football has taken a close look at the financial incomings and outgoings of the South Yorkshire side last year.
It was their first in the Premier League in 12 years and they finished ninth – their highest position since 1992.
Sheffield United to take a financial hit, even after parachute payments
When the Blades were promoted in 2019, their revenue from TV rights jumped from £8m to a whopping £117m.
Assuming the figure is likely to return to somewhere near the former when they are back in the Championship, that is a massive financial blow.
Even when taking into account the £42m they will receive in 2021/22 as a parachute payment.
This disparity could be further enhanced when looking at how United’s wage bill has increased in the top flight.
Despite being the lowest in the division last term at £78m, that was still an increase of almost double from the previous year when it was £41m.
Assuming the majority of the squad remain next season, that will also contribute to their losses.
Even if there are some high profile departures from the playing squad. Such as Sander Berge, who has been linked with the likes of Arsenal and Liverpool.
Wages to turnover last campaign was 54 percent. In 2018/19 it was 195 percent, which does admittedly include “sizable promotion bonuses”.
If fans were disappointed with the lack of spending this year, it could become a whole lot worse.