FA Cup Finances – Why The Magic has Gone

FA Cup Magic

The FA Cup Fourth Round is officially over and only 7 Premier League teams are in the draw for the next round. Neutrals have triumphed this as a sign that the ‘magic of the cup’ is still alive with a raft of giant killings occurring, however the reality is unfortunately a bit different.

The motivation of teams in the FA Cup is at an all-time low for Premier League clubs with weakened teams and poor performance across all but a few due to the slipping importance of this once great cup financially. 

At the end of the season when all is said and done, the trophy itself is of great pride to the winner however, there can only be one such winner with everyone else believing their efforts were a waste of time due to the lack of money (and trophy) to show for it.

This article analyses why Premier League clubs are disregarding the FA Cup by comparing the finances on offer to those in the other, higher-priority competitions.

FA Cup – Booby Prize

FA Cup Prize Money 2019

The FA Cup sees most Premier League clubs enter at the Third Round stage to great excitement of those in the lower leagues looking for a big payday and 90 minutes of fame.

For Premier League clubs and their owners, it is looked at as another fixture in a congested festive period. The winnings for such a fixture? A mere £180k which goes nowhere to funding anything in this day and age. These winnings only start to accumulate to any degree at the Quarter-Finals stage where a win earns you £720k. Cumulatively, the only rounds that earn you above £1m is the semi-finals and final, with the winner earning a decent sized £6.8m and the prestigious trophy.

However, getting to the final is no easy feat for any club with a fixture congestion to deal with, other good teams and injuries that can ruin any cup campaign. This means the risk to reward is fairly poor compared to what’s offered elsewhere…

Premier League – Lion Size Loots

Premier League Prize Money 2018

As shown above, Premier League clubs earn roughly an incremental £1.9m per league position in Premier League prize money (merit payments). This pay-out is larger than any FA Cup win other than a victory in the final (£3.6m). What makes this even more interesting is that the difference in points between 8th(£25.1m) and 15th(£13.5m) in 2018 was 9 points and a mouth-watering £13.5m, nearly double the total for an FA Cup victory despite taking only 3 games compared to 6 needed (at minimum) to win the FA Cup, not taking into account the added difficulty of navigating a cup run than picking up an extra 3 wins.

This showcase why resting players in cup games to be fresh for a Premier League game is becoming the wiser decision financially with the added rewards available.

Relegation – The Penny (lots of them) Drops

Premier League Relegation Cost 2015 - 2017

Not only is the Premier League important due to the differential of £1.9m per position, more importantly is survival which sees those near the bottom forego potential cup glory in the quest for preserving their Premier League status. Last year only 9 points separated 15thand 20th and 3 points between 17thand 18th.

Since 2015 (for those to release their financial data), the average revenue drop following relegation was £40.6m, ranging from as high as £61.2m to the lowest drop of£22.7m. The average is a crazy six times the winnings for the FA Cup, and such a revenue drop can be hard to come back from even if against all odds a relegated team wins the FA Cup (Hi Wigan).

Wigan fans may say they treasure that victory and they would be right in saying so, however the owners may have a slightly different view now it has all blown over.

Europa League – FA’s Big Brother

Europa League Prize Money 2019

Another benefit to going full out on only the Premier League is potential European qualification, starting first with the Europa League.

Seventh place seems to always be up for grab in the race to be the ‘best of the rest’ and will secure a Europa League place (unless the League Cup and FA Cup winners aren’t already qualified).

It is worth noting that an FA Cup will gain a club entry to the Europa League as an added benefit however for this still seems like an unrewarding venture due to the difficulties in winning the cup and most likely having to beat one of the top 6 in the process.

The Europa League also offers better financial reward after coming through the early stage and is the closest in prize money to the FA Cup. A million pound plus prize money is available with every win from the Last 16 onwards and the massive prize of £7.4m to the winners and a Champions League place, make it a more enticing competition to the two of the Top 6 who missed out on the Champions League in the previous season.

Cumulatively, A Europa League victory will net you nearly double that of an FA Cup win, not taking into account the Champions League qualification earned in the process.

Champions League – The Money Shot

Champions League Prize Money 2019

The pinnacle of European football and there is not much need to vindicate the reasons why the Premier League top dogs would prioritise this over the FA Cup. £14m is available in the group stage alone with a maximum pot of around £74m available to the winner plus more in commercial sponsors and additional prize money given to all clubs.

The finances on offer dwarf the FA Cup by more than ten-to-one and no fan would even want their club to jeopardise European glory for the FA Cup.

Conclusion 

The FA Cup is a great cup of tremendous prestige however its importance is waning as the finances available elsewhere outshine the FA Cup in its current format, not only this but participation in it can jeopardise the finishes and finances earned elsewhere with the ever-increasing demands of players, opening clubs up to the kind of shocks we have seen this year.

Here is to a return of the magic and a hope that you enjoyed this article.

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Matchday Money – FA Cup Quarter Finals

Here is your Matchday Money article for the FA Cup Quarter Finals, where we will estimate the matchday gate receipts taken at all FA Cup Quarter Final games.

Over £7m in revenue was taken in the FA Cup Quarter Final games from matchday gate receipts, TV money and match winning bonuses.

The revenue is calculated based on an average of the highest and lowest prices offered to club members for each match. This amount is then multiplied by the number of tickets available for sale which for the FA Cup is split evenly, with a percentage going to the FA Cup pool as detailed here.

Here are the results of the FA Cup Quarter Finals: 

Swansea 0 – 3 Tottenham

Manchester United 2 – 0 Brighton

Wigan 0 – 2 Southampton

Leicester 1 – 2 Chelsea

FA Cup Quarter Final Analysis

FA Cup Quarter Finals Attendance

FA Cup attendance varied greatly due to the varying stadium sizes hosting FA Cup Quarter Finals. Manchester United led the way with an attendance of 74,421 for their drab 2 – 0 win over Brighton.

Wigan lagged the rest with an attendance of 17,110 in their defeat to Southampton.

The average attendance was nearly 36,000, with United more than double this average skewing the results.

 

FA Cup Quarter Final Stadium Utilisation

Wigan will be disappointed with the fullness of their stadium with a capacity utilisation of only 89% despite the chance of Wembley so close against a recently struggling Southampton.

Meanwhile, the three Premier League teams all had similar levels of fullness with around 98% capacity utilisation, with Manchester United just edging the other two out.

The average capacity utilisation, dragged down by Wigan, was 96%.

 

FA Cup Quarter Finals Revenue

Manchester United unsurprisingly lead the way in revenue on a combination of winnings, stadium size and ticket pricing.

Manchester brought in revenue of nearly £1.8m while their opponents brought in around £1.4m with the difference all related to the winning bonus of £360k.

Tottenham Southampton and Chelsea all brought in excess of £760k.

At the other end of the scale were Wigan and Swansea, who brought in around £400k each in their defeats to Premier League opposition.

Manchester United and Brighton charged the highest prices at £35, while Swansea and Tottenham were at the other end of the scale at half that price. The average price for the FA Cup quarter finals was only £24.

The average revenue was a huge £877k as takings increase in the latter stages of the competition.

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Matchday Money – FA Cup Fourth Round

Here is your Matchday Money article for the FA Cup Fourth Round, where we will estimate the matchday gate receipts taken at all FA Cup games last week.

Over £8m in revenue was taken in the FA Cup Fourth Round games from matchday gate receipts, TV money and match winning bonuses.

The revenue is calculated based on an average of the highest and lowest prices offered to club members for each match. This amount is then multiplied by the number of tickets available for sale which for the FA Cup is split evenly, with a percentage going to the FA Cup pool as detailed here.

Here are the results of the FA Cup Fourth Round: 

Sheffield Wednesday 3 – 1 Reading

Peterborough United 1 – 5 Leicester City

Huddersfield Town 1 – 1 Birmingham City
Hull City 2 – 1 Nottingham Forest

Middlesbrough 0 – 1 Brighton & Hove Albion

Liverpool  2 – 3 West Bromwich Albion
Chelsea 3 – 0 Newcastle United
Cardiff City 0 – 2 Manchester City

FA Cup Fourth Round Matchday Analysis

FA Cup Fourth Round Attendances

The stadium capacity utilisation varies a great deal among the clubs competing in the FA Cup. The figures are surprising with the magic of the cup surely diminishing with an average stadium capacity of 68%, with 7 of the 16 home games being less than half full.

Huddersfield’s game against Birmingham had the lowest capacity utilisation with only 32% of the stadium being filled for their game, partly due to the lack of attraction between a lowly Premier League team facing a mid-table Championship team. They were closely followed by Sheffield Wednesday vs. Reading (37%) and Millwall vs. Rochdale (41%) which featured fairly similar lower league teams.

Surprisingly, Notts County’s game against Premier League Swansea was 49% full despite the opponents being 3 leagues above them in what was billed as proper FA Cup game. Newport will be happy to have secured a replay, which they will be hoping leads to an increased attendance with a giant killing very much a possibility.

High attendances were seen at Newport County, Yeovil, Chelsea, Liverpool, Cardiff and Peterborough, who all had Capacity utilisation of over 90%. Newport brought in temporary stands to increase their attendance to nearly 10,000 for their sell out game against Tottenham. They will be delighted with their replay which sees them travel to Wembley with a huge pay out guaranteed.

FA Cup Fourth Round Revenue

FA Cup revenue was calculated by splitting net gate receipts as detailed here and adding TV revenue for applicable games and winning proceeds for those teams that progressed to the FA Cup Fourth Round.

The big winners this round were West Brom who received over £800k in their surprise victory away at Anfield which was 99% full for their FA Cup game. The winning bonus and the fact it was televised significantly boosted their winnings. Liverpool of course also did well this week but that will hardly soften the blow of an early cup exit for the third consecutive year.

Of the lower league clubs Cardiff (£460k), Yeovil (£260k) and Newport County (£250k) will all be delighted with their match takings after drawing high profile Premier League clubs, with Newport set to take even more in their replay.

Ironically, one of the big winners in the last round were this week’s losers as Nottingham Forest were knocked out by hull, taking the lowest amount this at around £60k. This shows how quick fortunes can turn on a bad draw and result, with the side now having to focus on achieving their objective in the Championship.

As mentioned, Notts County will be scratching their head at their unbelievable low takings of less than £100k despite playing a Premier League club. They will be hoping the replay reaps greater rewards.

These replays will further increase the revenue achieved by some of the low earning clubs this week, especially for those chosen to be televised, with the winner still entitled to their £90,000 winning bonus for the FA Cup Fourth Round.

As for the FA Cup pool, which is used to pay out FA Cup winnings, is 10% of net gate receipts and comes to around £600k, around half of the amount for the last round. For the FA Cup Fourth Round, £90,000 is paid out to each team for winning their respective ties, coming at a cost of £1.4m.

Therefore the FA is running a deficit for this round of £800k currently, however they may be in a better position once replays are taken into account.

This money will likely be recouped in later rounds once attendances improves (increased winnings are counter balanced with less teams). Furthermore, this amount also doesn’t include sponsorship deals the FA have with their commercial partners.

That’s it for this week’s Matchday Money article; we will be back next week with Premier League action from Gameweek 25.

 

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FA Cup Prize Money – How Much Can Your Club Get ?

FA Cup Prize Money

With the Third Round of the FA Cup kicking off tonight with the blockbuster tie Liverpool v.s. Everton, we will analyse the prize money and gate receipts to be earned by clubs in this years FA Cup and show how much small teams can benefit from this.

The gate receipts earned by clubs will be posted in our Matchday Money Article on the conclusion of all the FA Cup games each week.

Prize Money

FA Cup Prize Money Breakdown

The winner of in each tie of each round will receive a win bonus for their success. In total, the FA pay out over £15m to clubs competing in the FA Cup, which is paid out of a pool from from gate receipts that we will look at in more detail later.

As you can see, a run to the final starting from the FA Cup Third Round will net a club nearly £5m, not taking into account the additional gate receipts received.

The importance of the FA Cup to clubs has fallen due to the growing importance of the more lucrative Premier League and Champions League competitions, which yield much higher revenues for competing in them. £5m to the clubs near the top of the Premier League and maybe even lower is just a drop in the ocean and while nice, it pales in comparison to the riches offered in other competitions.

Gate Receipts

Gate receipts are the ticket sales for any given match, usually these go to the home team however in the FA Cup they are split as we will detail below. The amount split is the net gate receipts, this is the gate receipts less expenses. In addition around 15% of matchday tickets are allocated to the away team for FA Cup games.

Ticket Prices

The ticket prices for FA Cup games are indicated by the Football Association with recommended prices for each round, these can be deviated from if both clubs agree to a certain price. The recommended prices are as followed:

Round 3 – 6 : £15

Round 1 and 2 : £10

4th Qualifying Round : £6

2nd and 3rd Qualifying Round : £5

1st Qualifying Round and below : £3

Around 15% of all tickets should be allocated to the away team, this can deviate from this if both clubs agree or due to safety concerns.

Expenses

The expenses that are deducted include all expenses necessary for the game to take place.

Vital for a game to take place, referees take up the majority of expenses, with travel, food and match fees all required.

Travel expenses include the cheapest railway fare available on the day or 40p per mile if travelling by car. Should an overnight stay be required, a maximum of £100 can be expensed for their stay. A meal allowance is allowed if travel exceeds 4 hours (£15), 6 hours (£20) or 8 hours (£25).

FA Cup Match Official Fees

Match official fees are also an expense, these cause more of an issue for lowly team in the first few rounds where the expense, despite small, is more of a burden than a couple thousand pounds for professional clubs.

The match official fees never go any higher than in the third round, meaning success is not penalised with further expenses in respect of refereeing costs.

The away team’s expenses are also deducted to get to the net gate receipts, with the following fees deductible:

Travel

  •  £3 per coach mile (£6 where overnight stay is required)
  • 40p per mile for up to 5 cars
  • 25 cheapest train tickets

Hotels – £100 per person for up to 25 people

Medical costs

The expenses on the day also include Floodlights (£100) and policing costs.

These costs are all minimal for bigger clubs and become relatively minuscule the further into the competition clubs get compares to the winnings on offer.

Now we know how the net gate receipts are calculated, we will analyse how this income is split between clubs.

How Gate Receipts Are Split

So net gate receipts are split equally in most situations to greater benefit of smaller teams, who in one blockbuster game can make more than they do in an entire season.

Before we move on, the FA, to pay the prize money for the competition, extract a fee from each game’s gate receipts. This amount is known as the ‘pool’ and is taken from each game, starting in the third round.

Another amount is taken, 5% of all replays, which is split between all non-football league team clubs paying in the first round, something which can be quite lucrative to these teams.

Up to the FA Cup Third Round, net gate receipts are split evenly between the competing teams with no amount taken to contribute to the pool, however the 5% if matches are taken to a replay is taken, which would leave both clubs with 47.5% of net gate receipts.

For the Third to sixth rounds of the FA Cup, 10% is taken from net gate receipts and added to the pool, leaving both clubs with 45% of net gate receipts (42.5% for replays).

However, where one of the clubs is outside the football league, that club get 50%, the other club 40%, with 10% still going to the pool (47.5% and 37.5% for replays, with 10% still going to the pool)

In the FA Cup Semi Final, 5.5% of the net gate receipts fees is given directly to the FA, for distribution to affiliated associations at their discretion. A payment is also made to the stadium owner where the match is played (currently Wembley). Of the remainder, after payment to the stadium provider:

  • 25% is given to the FA;
  • 65% is to be shared between clubs (32.5% each); and
  • 10% goes to the pool.

In the big one, the FA Cup Final, 5.5% is given once again to the FA for distribution to affiliated associations and a payment is also made to the stadium providers. Of the remainder, 90% is given to the FA and 10% is given to the pool.

TV Money

FA Cup TV Money

FA Cup TV revenue can be a real money spinner for the lucky few that are chosen for broadcasting. Up until and including the FA Cup Fifth Round, the amount of money for those broadcasted is more than the amount given for winning the match! Losing a televised First Round match is more lucrative than winning a First and Second Round non-televised match in terms of match winnings alone.

I hope you have enjoyed this article. Stay tuned for the Matchday Money article for Gameweek 22 as well as a tracker for FA Cup prize money for all Premier League games.

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