17 July 2024

Final News:Luton Town have received a £36 million boost as a result of star  player transfer.

In order to join the Premier League, Luton Town has overcome all odds.


The Hatters’ incredible rise from non-league to the top level was culminated on Saturday with a victory over Coventry City in the Championship play-off final.


For a team with one of the lowest salary bills in the Championship, promotion is a truly remarkable accomplishment.


But how much of a lift will the team and the community as a whole receive by returning to the top division of football for the first time since 1992?


ITV News Anglia sought clarification from renowned football finance expert Kieran Maguire.Compared to the vast majority of clubs in the Championship, Luton don’t have a lot of money to play with.


Their current squad was assembled for around £5.5 million, with a large chunk of those players having been signed on free transfers.


The Hatters aren’t able to pay huge wages either. In fact, their average wage is thought to be between £7,000-£8,000 a week – well below the league average of £14,000 a week.


To put that in perspective, last season’s Championship winners Fulham were promoted with an average wage of £40,000 a week.


“We’ve just seen Watford sell one of their players, João Pedro, for £30 million to Brighton, and we’ve got some squads in the Championship that have cost close to £200 million,” Kieran Maguire told ITV News Anglia.


“So, for Luton to do it on such a budget is an incredible achievement.Chasing the Premier League dream can be life-changing if it comes off, but incredibly destructive if it doesn’t.


Just this season, both Reading and Wigan Athletic were hit with points deductions for financial issues and were ultimately both relegated to League One.


In Wigan’s case they failed to pay their wages five times in a year. Both examples should serve as warnings to other clubs about what can happen if you spend beyond your means, but there are no such worries at Kenilworth Road.


Luton are one of the best-run clubs in the Championship and are unlikely to risk their future on a host of big-money signings in the big time.


“Reading were paying £240 in wages for every £100 that came through the door,” said Mr Maguire. “If that was any other business, you’d close it down immediately.”


“Perhaps those clubs that are looking for a quick fix by simply signing a couple of players on Premier League wages can take note that there is an alternative, and this alternative doesn’t gamble with the future existence of the football club itself.”The Championship play-off final is often touted as being the richest game in world football, and for good reason.


The winners receive a minimum of £100m in TV money alone, as well as an extra £3m for every place higher they finish in the Premier League table the following season.


So, the team which finishes 17th will earn £12m more than the club which ends up propping up the division.


It’s a huge jump compared to the Championship TV contract where clubs like Luton are given around £10m a year.


Greater exposure on the world stage brings with it a whole host of additional commercial benefits too, such as more lucrative shirt sponsorship deals for example.


“Luton made a total commercial income of just £2m last year,” said Mr Maguire.


“If you take a look at Luton’s revenue, they bring in about £17 million a year. There’s clubs in the Championship who are earning parachute payments of two-and-a-half times that, and that’s before they even sell a single ticket.


“I would expect the level of revenue at the club to increase by 700%-800% [to around £136-153m) should they be successful and be promoted.”

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