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Birmingham City interim chief executive Jeremy Dale, investor Tom Brady and chairman Tom Wagner at Wembley<\/p>\nBirmingham City are back in the Championship with deeper pockets than ever before under Knighthead<\/p>\n
15:00, 23 Jun 2025Updated 15:00, 23 Jun 2025<\/p>\n
Birmingham City interim chief executive Jeremy Dale, investor Tom Brady and chairman Tom Wagner at Wembley<\/p>\n
Tom Wagner has been unwavering in his belief that Birmingham City<\/a> are in the position to compete financially with every team in the Championship \u2013 even those in receipt of parachute payments.<\/p>\n In each of the last five seasons, two of the three teams promoted from the Championship have been benefitting from parachute payments.<\/p>\n It equates to around \u00a350 million in the first year before gradually decreasing in years two and three.<\/p>\n Unusually, there will only be four teams receiving parachute payments in the Championship next season. In addition to the three clubs relegated from the Premier League, Sheffield United will also benefit from another lump sum after losing the play-off final to Sunderland.<\/p>\n Addressing that, Blues chairman Wagner told BirminghamLive:<\/a> \u201cOur goal is to generate as much revenue as (clubs with) parachute payments do, but without having received parachute payments, so ultimately we want to be in a position where we don\u2019t care how many parachute clubs there are because we\u2019re generating the same level or more than they are.\u201d<\/p>\n The R word \u2013 revenue, not relegation \u2013 has become a buzzword during Knighthead\u2019s<\/a> tenure as owners of Blues. They have explored every possible avenue to increase revenue.<\/p>\n Through fan parks, match day street food options and corporate hospitality, Knighthead have made St Andrew\u2019s a place where supporters want to be for more than 90 minutes.<\/p>\n Match receipts for the financial year ending June 2023 were \u00a33.7m, compared to \u00a36.1m in Knighthead\u2019s first season at the helm. The average gate increased to 26,326 last season, from 21,180 in 2023\/24, so that figure will increase significantly for the next financial year.<\/p>\n Then there\u2019s commercial revenue. The last accounts showed Blues made almost \u00a313m in commercial revenue in 2023\/24, more than double the \u00a36.2m they banked in 2022\/23.<\/p>\n Since then, Delta Airlines \u2013 whose operating revenue for 2024 was a staggering $61.6 billion \u2013 Vertu Motors and Coral have all joined Nike and Undefeated on board.<\/p>\n The documentary charting the club\u2019s record-breaking season will air on Amazon Prime this summer and that will see Blues rake cash in. And, as the story gets bigger, the price of entry for commercial partners will too.<\/p>\n It goes without saying that Blues\u2019 commercial revenue increased in 2024\/25, despite their League One status, and it will again next season.<\/p>\n Reach\u2019s Business of Football reporter Dave Powell told the Keep Right On Podcast:<\/a> \u201cIt\u2019s very difficult to put exact figures on them because there are lots of different caveats attached to how well commercial partnerships do, even down to kit supplies, promotion, or how much you feature in TV broadcasts.<\/p>\n \u201cHowever, we can look at some of the more recent deals that have been struck. Everton\u2019s stadium naming rights with Hill Dickinson is worth around \u00a310million per year roughly.<\/p>\n \u201cThere\u2019s fair market value for clubs attached to sponsorship deals, you can\u2019t just come in and receive a cheque for \u00a3500m from a company associated with someone who owns your club, but what you can do is build a partnership over time which really becomes valuable.<\/p>\n \u201cThings like the Delta deal. When Birmingham<\/a> reach the Premier League, expect a significant uplift in the value of the deal.<\/p>\n \u201cIt\u2019s hard to put a figure on it but that \u00a313m they got in the year ending June 2024, it doubled from 2023, so I would imagine they are probably going to be pushing \u00a320m in commercial revenue for 2024\/25 and that\u2019s being conservative.\u201d<\/p>\n What would be a successful first season back in the Championship for Blues? Let us know HERE<\/a>Get the latest Blues headlines sent straight to your phone<\/p>\n BirminghamLive has its very own Birmingham City<\/a> WhatsApp community to deliver the latest headlines straight to your phone. Just click this link<\/a> to receive daily Blues content and breaking news. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don\u2019t like our community, you can check out any time you like. Click on the name at the top of your screen while in WhatsApp and click ‘Exit Group’. 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