Birmingham City are looking to compete for promotion to the Premier League upon their return to the Championship
Birmingham City chairman Tom Wagner speaks to the fans at St Andrew’s @ Knighthead Park
There will only be four clubs in the Championship next season benefitting from parachute payments in a boost to Birmingham City’s hopes of bucking the trend and competing for promotion.
Sheffield United’s defeat to Sunderland in Saturday’s play-off final means they will be the only existing Championship club receving parachute payments next season. The Blades still have two more years of payments from the Premier League following their relegation in 2024.
Leeds United and Burnley won promotion to the Premier League, meaning their parachute payments have now reset. Luton Town exited the Championship at the other end after suffering back-to-back relegations.
Historically, the teams receiving parachute payments from the Premier League have had a financial advantage over their Championship rivals.
Ipswich Town, Leicester City and Southampton will all pocket nearly £50 million to cushion the blow of being relegated from the top flight and back into a league operating in a different world of budgets.
Norwich City and Watford have just received their third and final season’s worth of payments since relegation from the top flight in 2022.
All of that means the Championship should be more competitive than it has been for a while in 2025/26, which is perfect timing for newly-promoted Blues.
Blues are back in the second tier after a record-breaking season in League One and looking to compete for a place in the Premier League. Blues haven’t finished above 10th in the Championship since the 2011/12 season.
The club now has greater financial clout than ever before with American investment firm Knighthead, headed up by Tom Wagner, investing aggressively in the hope of bringing Premier League football back to St Andrew’s.
Wagner has said on multiple occasions that Blues’ revenue – which is helped by lucrative commercial deals with Nike, Undefeated, Delta Airlines and Vertu – is on track to match the teams receiving parachute payments next season.
Speaking to The Times in April, Wagner said: “If our revenue progresses as we expect into next season, which is basically a certainty, we will be the highest revenue-generating club in the Championship ever not receiving parachute payments — and we will be on a par with those receiving parachute payments.
“If we then progress one year further, and we’re fortunate enough to end up in the Premier League, we’ll be a mid-table club or better in total revenue, first year in.”
Revenue and increased spending obviously doesn’t guarantee success because Blues still have to find and acquire the right players, but it does give them access to the players who can win you promotion.
With so few teams receiving parachute payments for the first time in a long time, and Blues in a healthier financial position than ever before, this is perhaps the perfect opportunity to upset the apple cart.
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Birmingham City Champions 2024/25
RECORD-BREAKING Birmingham City are back in the Championship.
Chris Davies’ side passed the 100-point mark on their way to taking the League One title this season.
And this Birmingham Mail promotion special charts the brilliant Blues’ path to glory, with match-by-match analysis, reaction, comment, brilliant celebration pictures and a Champions poster in the middle pages.
Buy now and have it delivered directly to your door. Alternatively you can purchase in most supermarkets, high street retailers and independent newsagents in Birmingham from May 9, 2025.