EFL Championship Financial Results Season 2023/24
- Matchday Finance
- Jul 6
- 15 min read
Updated: Jul 8
The 2023/24 Sky Bet Championship marked the 32nd season in its current format. It concluded with Leicester City, Southampton, and Ipswich Town earning promotion to the Premier League, while Birmingham City, Huddersfield Town, and Rotherham United were relegated to League One.
Championship football remains a high-stakes business. Every season, club owners inject tens of millions of pounds into their teams, chasing the dream of promotion and the lucrative rewards of Premier League status. Many hope to emulate the success stories of clubs like Brighton, Bournemouth, and Brentford.
However, the risks are considerable. In recent years, clubs such as Derby County and Wigan Athletic have entered administration, while others—including Reading and Sheffield Wednesday—continue to face significant financial challenges. It's not uncommon for owners to absorb substantial losses, as seen when Marcus Evans wrote off £100 million in debt before selling Ipswich Town to Gamechanger 20.
Despite the financial pitfalls, investor appetite remains strong. The 2023/24 season saw a record £400 million in new investment. Mirroring a trend in the Premier League, there is growing American interest in the Championship, with six clubs now under the control or ownership of US-based groups.
The overall financial performance of the league is heavily shaped by the composition of its clubs in any given season. In 2023/24, the three recently relegated clubs—Leeds United, Southampton, and Leicester City—generated a combined revenue of £318 million. In contrast, the previous season’s promoted sides—Sheffield United, Burnley, and Luton Town—had combined revenues of just £148 million, representing a £170 million swing. This variation should be taken into account when assessing wider financial trends across the league.
In the analysis that follows, we use the term ‘like-for-like’ to refer to financial comparisons that exclude the three clubs relegated from the Premier League—Leeds, Southampton, and Leicester, and the three clubs promoted from League One—Plymouth, Ipswich and Sheffield Wednesday.
Seasons 2023/24 Financial Summary
The 2023/24 season was a record-breaking year for the Championship, with total revenue reaching an all-time high of £959 million — a 27% increase on the previous season. However, this growth was largely driven by the inclusion of high-revenue clubs relegated from the Premier League, rather than underlying commercial performance. On a like-for-like basis (excluding Leicester, Southampton, and Leeds), revenue growth was flat.
Despite record turnover, financial losses remained high. Total pre-tax losses across the league stood at £317 million, broadly in line with the £319 million loss recorded the previous year. Only four clubs – Southampton, Watford, Coventry, and Blackburn – reported a profit, all due to gains from player sales.
No Championship club generated positive operating cash flow (before investment and financing activities). This shortfall meant owners injected an additional £417 million in fresh capital to cover operational and investment needs — an increase from £333 million the year before.
Turnover - more >
Championship clubs generated a record £959 million in total revenue, a 27% year-on-year increase. Excluding the three previously relegated clubs, there was no revenue growth on a like-for-like basis.
Commercial revenue rose by 50% overall, and by 8.7% on a like-for-like basis.
Matchday income increased by 49% across the league, and by 18% on a like-for-like basis.
Broadcast distributions totaled £435 million, up £33 million from the previous year. Parachute payments from the Premier League accounted for over half of total broadcast income.
Staff Costs - more >
Total wage expenditure rose 25% to £893 million. On a like-for-like basis, the increase was only 3.6%.
Amortisation charges increased 77% to £268 million, driven again by the relegated clubs. On a like-for-like basis, amortisation remained flat at £102 million.
Total staff costs, including amortisation but before player sales, reached £1.2 billion, representing 125% of total turnover.
Profits from player sales surged to £417 million, more than double the £181 million posted the previous season. Leicester City and Southampton accounted for nearly half of this total.
Profitability - more >
Four clubs reported a profit for the season, Southampton, Watford, Coventry and Blackburn, all as a result of profit from player sales.
Only two clubs, Norwich and Watford, recorded positive EBITDA (Earnings before Interest, Taxation, Depreciation, and Amortisation). No club reported an operating profit (profit before exceptional items such as player trading).
Leeds United posted the largest individual loss, totaling £61 million.
Overall league losses stood at £317 million, in line with the £319 million loss in 2022/23.
Player Trading - more >
Spending on player acquisitions increased by £124 million to £314, while income from player sales increased by £303 million to £523 million.
The league was a net seller, with net trading of -£209 million, compared to -£30 million the previous season. Trading activity was significantly influenced by Southampton, Leicester, and Leeds.
The net book value of players more than doubled to £546 million, with 60% of the value attributable to Leeds, Leicester, and Southampton.
Football Net Debt - more >
Total club loans increased by £153 million to £1.4 billion, with Leicester holding the highest debt at £212 million.
Net transfer-related debt totaled £132 million, mainly driven by Leeds and Southampton.
Cash Flow - more >
No clubs generated positive operating cash flow (before investment and financing). Total operating cash outflows reached £422 million, with Leeds posting the largest outflow at -£92 million.
£53 million was invested in facilities, £382 million in player acquisitions, and £399 million was received from player sales.
Clubs raised £467 million in new equity to cover funding shortfalls and repaid £50 million in loans.
These figures highlight the financial risks embedded within the Championship. With total negative operating cash flows of £422 million, the league remains dependent on player sales and new owner investment. While the Championship plays a crucial role in developing talent and continues to operate as a net seller in the transfer market, this alone is insufficient to close the funding gap. As a result, over £400 million in new owner funding was required during the 2023/24 season.
Seasons 2023/24 Turnover
Turnover hit a new record in season 2023/24, rising by 27% to £959 million.
While a 27% increase in revenue appears impressive, it was almost entirely driven by the change in club composition. The combined revenue of Leeds United, Southampton, and Leicester City was £170 million higher than that of the clubs they replaced — Luton Town, Sheffield United, and Burnley.
On a like-for-like basis, excluding both newly relegated and promoted clubs, overall revenue was flat with no underlying growth.
Clubs receiving Premier League parachute payments led the revenue tables, with Leeds United generating £128 million — a record high for the Championship.
Matchday
Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA.
Matchday revenue reached a record £214 million, an increase of nearly £72 million compared to the previous year. While this growth was significantly influenced by the presence of relegated clubs, matchday income still rose by 18% on a like-for-like basis — a strong result.
Average league attendances hit 23,000 — the first time in five seasons the Championship has exceeded the 20,000 mark. Notably, on a like-for-like basis, average attendance still grew by 9.6% to reach 21,300, reflecting the league’s sustained popularity.
Leeds United led the league in matchday revenue. Although Sunderland had the highest average attendance at 41,028, Leeds generated an impressive £30.58 per paying supporter. Their matchday income ranked ninth across all English clubs, and their revenue per fan exceeded that of Premier League sides such as Aston Villa, Crystal Palace, and Bournemouth.
Broadcast Revenue
Broadcast revenue in the Championship is heavily influenced by parachute payments made to clubs relegated from the Premier League. This controversial system provides additional financial support for up to three years, or two years if the club spent only one season in the top flight.
In year one, a relegated club receives 50% of the Premier League’s equal share distribution, followed by 45% in year two, and 20% in year three — provided the club remained in the Premier League for more than one season.
In 2023/24, the equal share was valued at £95 million, meaning clubs received £47.5 million in year one, £42.7 million in year two, and £19 million in year three.
Up to nine clubs can receive parachute payments in a single season. However, the recent trend of promoted clubs facing immediate relegation has reduced the number of qualifying teams. In 2023/24, five clubs received parachute payments totaling £230 million. Leeds United, Leicester City, and Southampton — all in their first year out of the Premier League — each received £48 million. Watford and Norwich City, in their second year, received £43 million each. As both Watford and Norwich were relegated after a single Premier League season, 2023/24 marked their final year of eligibility.
Looking forward, only four clubs will receive parachute payments in both the 2024/25 and 2025/26 seasons, reducing total payments by £43 million.
For clubs not receiving Premier League parachute payments, broadcast revenue is made up of several components: a share of the Championship’s domestic TV deal (typically worth £3–4 million annually), appearance-based fees that can add £500,000 to £1.5 million depending on how often the club is televised, and a share of international broadcasting rights, which usually contributes an additional £1–2 million.
On top of this, each club receives approximately £5.5 million in solidarity payments from the Premier League, designed to support clubs in the Championship and lower leagues. This is calculated at 6% of the Premier League’s equal share distribution
Breaking this down by source of funds, we see that parachute payments make up over 50% of the league broadcast revenue, and are 24% of the league total revenue of 959 million.
The 2023/24 season marked the final year of the current EFL domestic broadcast rights cycle. A new five-year agreement has been secured with Sky Sports, covering the Championship, League One, and League Two. Valued at £935 million, the deal is expected to deliver a 50% increase in central broadcast distributions to Championship clubs.
Commercial Revenue
Commercial revenue — including sponsorships, retail merchandise, tours, and other related activities — reached £310 million in the 2023/24 season, representing a 50% increase compared to the previous year. However, this growth was largely driven by the change in club mix, with Leeds United and Leicester City leading the rankings. On a like-for-like basis, commercial revenue grew by a more modest 8.7%.
Sponsorship income can make up more than 50% of a club’s commercial revenue, with shirt sponsorship being one of the most valuable assets for Championship teams. In the Premier League, betting companies are the most common shirt sponsors, with seven clubs featuring them on the front of their kits. In the Championship, five clubs — Middlesbrough, Stoke City, Southampton, Sunderland, and Watford — currently have betting companies as their front-of-shirt sponsors. However, these deals will end after the upcoming season, as a ban will come into effect prohibiting betting companies from displaying their names or logos on club shirts.
Other sectors represented among shirt sponsors include tourism, utilities, construction, food and drink, and vaping. A standout example is Ipswich Town, whose front-of-shirt sponsor is the Mathematics Tour by minority owner Ed Sheeran — a unique partnership in English football.
Season 2023/24 Staff Costs
Staff costs include club salaries and wages, player amortization (spreading a player's transfer fee over the length of their contract) and impairment charges (a one-time reduction in a player's book value if it exceeds their market value). It also includes profits generated from player sales.
Staff costs before profit from player sales rose by £253 million to £1.12 billion.
This sharp increase was largely driven by the relatively high staff costs at Leeds, Leicester, and Southampton. However, on a like-for-like basis—excluding clubs that were promoted or relegated—pre-player-sale staff costs rose by just 2.6%.
Leicester recorded the highest staff costs at £154.4 million, followed by fellow relegated clubs Leeds United and Southampton. Notably, both Leicester and Leeds had higher staff costs than several Premier League teams at the time, including Brentford, Burnley, Sheffield United, and Luton Town.
These figures also include promotion-related bonuses. For instance, of Ipswich Town’s £44 million wage bill, £15 million was attributed to promotion bonuses. Southampton and Leicester are also estimated to have paid bonuses of around £20 million each.
Championship clubs are generally unprofitable, primarily because their staff costs significantly exceed the revenue they generate. As a result, clubs are often forced to sell players to remain within the league’s profitability and sustainability rules—and even then, they still depend heavily on owner funding to cover ongoing losses.
Staff costs before player sales totaled £1.12 billion, which amounted to 122% of total turnover—£161 million more than revenue. In such a scenario, financial losses are unavoidable.
Only eight clubs had ratios below 100% with West Brom having the highest ratio at an incredible 183%.
Profit on Player Sales
Generating profit—or at least reducing losses—through player sales is a common and essential practice in the Championship. This often stems from clubs relegated from the Premier League needing to cut wage bills or recoup some of the spending made in efforts to remain competitive at the top level. Additionally, many players have relegation clauses in their contracts that allow them to leave if their club drops into the Championship.
The league also serves as a key development ground for emerging talent, with clubs frequently making substantial profits by selling home-grown players to larger teams.
Whatever the motivation, profitable player trading is a fundamental part of the Championship’s financial model.
The mechanism is straightforward: when a player is sold, the selling club records the profit as the difference between the sale price and the player's net book value. For example, if a player is purchased for £10 million on a five-year contract (amortized at £2 million per year) and sold for £7 million after three years, the remaining book value is £4 million—resulting in a profit of £3 million on the sale.
The 2023/24 season saw record-breaking player sales, with clubs generating a total of £417 million in profits from transfers.
However, a significant share of that total came from Southampton and Leicester City, who offloaded a number of players following their relegation from the Premier League. Together, these two clubs accounted for nearly half of all player sale profits.
Among clubs not receiving parachute payments, several generated strong profits from player sales. Notable examples include Blackburn Rovers with the sale of Adam Wharton, Coventry City with Viktor Gyökeres and Gustavo Hamer, Bristol City with Alex Scott, and Middlesbrough with Chuba Akpom and Morgan Rogers.
Season 2023/24 Profit and Loss
The overall loss for the 2023/24 season remained broadly in line with the previous year, totaling £317 million. EBITDA (earnings before interest, tax, depreciation, and amortisation)—a commonly used proxy for cash flow—fell from -£282 million to -£348 million, marking the lowest level in recent seasons. Operating profit, which excludes one-off items such as player sale profits and exceptional income or costs, declined sharply to -£676 million, compared to -£471 million the year before.
These losses highlight the underlying issues in the current Championship financial model, where staff costs consistently exceed revenue. A negative EBITDA indicates that clubs are not generating enough income to cover their day-to-day operating expenses, while a negative operating profit underscores their heavy reliance on player sales and owner funding to offset ongoing losses.
The financial data below reflects the consolidated profit and loss statements of all 24 Championship clubs for each respective season.
Reviewing club profitability reveals several key points:
EBITDA: Only two clubs—Watford and Norwich—reported a positive EBITDA. Ipswich recorded the lowest EBITDA at -£33 million, which included approximately £16 million in promotion bonus payments.
Operating Profit: No clubs achieved a positive operating profit. The highest operating losses were reported by the three relegated clubs: Southampton (£87 million), Leicester (£81 million), and Leeds (£76 million).
Profit Before Tax: Although Southampton had the lowest operating profit, they recorded the highest profit before tax of £17 million, driven by £123 million in player sales. Besides Southampton, only Watford, Coventry, and Blackburn reported pre-tax profits, all benefiting from player sales. Leeds United posted the largest loss before tax at £61 million.
The table above also includes each club's three-year rolling profit, which is critical for assessing compliance with the league’s Financial Fair Play (FFP) rules. Under these regulations, a club is permitted to lose up to £39 million (£13 million per year) over a three-year period. However, if a club has spent any of those three years in the Premier League, it is allowed higher losses of £35 million per top-flight season. For example, Leeds United, having spent two seasons in the Premier League and one in the Championship, are permitted total losses of up to £83 million over that period.
FFP rules also allow deductions for specific categories of expenditure, including depreciation, youth development, community programs, and women's football. These adjustments can be substantial. Ipswich Town, for instance, disclosed £19 million in spending across these areas, and could also exclude £16 million in promotion bonuses. As a result, their reported three-year loss of £70 million is adjusted down to £34.9 million—comfortably within the allowable limit.
Two clubs currently near the threshold are Leicester City and Leeds United, both with an allowable loss limit of £83 million. Leicester’s situation highlighted a grey area in FFP enforcement when transitioning between leagues, raising uncertainty over which governing body holds jurisdiction. A tribunal has since ruled that the Premier League has authority to charge the club, leaving Leicester at risk of a future points deduction. The case remains ongoing.
Leeds stated in their published accounts that they remained within the allowable limits, though they appear to have been close. This likely influenced their early 2024/25 player sales—such as Archie Gray, Crysencio Summerville, and Georginio Rutter—to strengthen their financial position. Despite these departures, the club still secured promotion.
Season 2023/24 Player Trading
The Championship depends heavily on player sales to meet the league’s profitability and sustainability rules, serving as a key development ground for emerging talent. As a result, the league consistently operates as a net seller of players. This trend is reinforced by clubs relegated from the Premier League, which often face financial pressure to reduce costs and may have relegation clauses that trigger player departures.
For each of the past six seasons, the Championship has been a net seller. In 2023/24, clubs spent £314 million on new players but generated £523 million in sales—resulting in net transfer income of £209 million.
Reflecting this trend, the chart below highlights Leicester, Southampton, and Leeds were all significant sellers.
Squad Cost and Player Net Book Value
Squad Cost is the total acquisition cost of the current playing squad. This includes transfer fees and intermediary expenses like agent fees. It covers all players, even if their costs have been fully amortized, but excludes homegrown academy players, as their acquisition cost is zero.
Player Net Book Value is the squad costs less accumulated amortization. For example, if a player was bought for £10 million on a five-year contract, their net book value after two years would be £6 million—reflecting two years of amortization at £2 million per year.
Following four consecutive seasons of decline, net book value rose sharply in 2023/24. This increase was largely driven by Leeds, Leicester, and Southampton, whose squads maintained high book values despite significant player sales.
Season 2023/24 Football Net Debt
Football Net Debt covers traditional borrowings such as bank loans (offset by cash reserves), as well as loans provided by club owners or affiliated entities like parent companies. It also includes outstanding payments owed to other clubs for player transfers.
Loans
At the end of the 2023/24 season, total loans—net of cash on hand—reached £1.4 billion, up from £1.28 billion the previous year. However, this increase is partly due to changes in the composition of clubs in the league, particularly the inclusion of Leicester City, which carries a substantial amount of debt.
Of the £1.4 billion total, £404 million consists of third-party loans (net of cash), while the remaining £1 billion comes from related party loans. These related party loans are typically interest-free, have no fixed repayment terms, and are often eventually converted into equity.
As illustrated in the chart below, Leicester City holds the highest debt at £212 million, while Blackburn, Cardiff, and QPR each carry debts exceeding £100 million.
Player Trading Debt
It is common practice for player transfer fees to be paid in instalments over several years, effectively acting as a form of financing for clubs.
By the end of the 2023/24 season, Championship clubs owed a total of £289 million to other clubs for transfers, while they were due to receive £157 million—resulting in a net transfer payable of £131 million.
This net payable amount is largely concentrated among a few clubs: Leeds United (£73 million), Southampton (£51 million), and Ipswich Town (£26 million). However, it’s important to note that not all clubs disclose their transfer payables, so the actual figures may be higher.
Season 2023/24 Cash Flow
Cash flow is vital for any business, and Championship clubs are no exception. It is generally divided into three areas:
Cash Flows from Operations. This refers to the cash generated by the core operations of the club, effectively the revenue minus day-to-day operational costs such as salaries, wages, rent, utilities, etc. It excludes non-cash expenses like depreciation and amortization and is calculated before any investment or financing activities.
Cash Flows from Investments. This includes cash flows from investment activities such as player acquisitions and facility improvements, net of any player or asset sales. It represents actual cash movements. For example, if a club buys a player for £10 million, the payment might be spread over four years, meaning the cash flow would be £2.5 million per year.
Cash Flows from Financing. This covers new loans or equity raised, minus any loan repayments or share buybacks (which are rare). Essentially, if cash flow from operations doesn’t cover the cash flow required for investments, additional financing is needed.
In the 2023/24 season, no Championship club reported a positive cash flow from operations. While operating cash flow can vary year to year, this was also the case in 2022/23. Extending the analysis over the past three seasons, only one club—West Brom—generated a positive operating cash flow, and that was a modest £2 million.
These figures highlight the underlying financial structure of the Championship, where operating expenses consistently exceed revenue.
From an investment standpoint, clubs spent £53 million on facilities and £399 million on player acquisitions during the season, while generating £383 million from player sales.
This created a funding gap of approximately £475 million. Of this, £467 million was financed through new funding, with the remainder covered by existing cash reserves. Some of the funding was also used to reduce outstanding loans by £50 million.
The level of new funding has been rising steadily in recent years, with the £417 million raised in 2023/24 marking a record high.
These figures represent the financing-related cash flows for Championship clubs in each respective season.
However, if we focus on the clubs competing in the 2023/24 season and extend the analysis over the past three years, we find that collectively they have received over £1 billion in new funding—primarily through new equity injections.
This highlights once again the substantial financial support required to sustain the Championship at its current level. Club owners continue to invest heavily, driven by the ambition of securing promotion and the promise of a future in the Premier League.