HOW do clubs in League One and League Two make their money to sustain football operations?
That’s a great question because it is a costly exercise to chase promotion. In fact there are some eye watering salary figures across the two divisions which attract plenty of football betting.
Looking at League One, the current top five yearly wage bills are reported to be:
- Luton Town - £20.7 million
- Cardiff City - £13.9 million
- Huddersfield Town - £6.7 million
- Wigan Athletic - £5.6 million
- Stockport County - £5.2 million
Meanwhile, the top five wage expenditure in League Two is:
- MK Dons - £3.5 million
- Bristol Rovers - £3.2 million
- Gillingham - £3.1 million
- Chesterfield - £3 million
- Colchester United - £2.9 million
So how is this money generated? Lower League clubs have several different sources of income. This has to be taken into consideration when betting on games.
CENTRAL FUNDING
Central funding is pooled by the EFL so clubs receive a set amount each season. This is split into a ‘Solidarity Payment’ and a ‘Basic Award’ paid in monthly instalments throughout the year.
Therefore clubs in League One receive a confirmed £1.58 million each per season. In League Two, the overall verified figure is £1.13 million.
The Basic Award incorporates the EFL’s current five year broadcasting deal. In effect, member clubs receive a split per football season for their matches being screened on television.
More than 1,000 EFL fixtures are screened live on Sky Sports via Sky each season.
GATE RECEIPTS
Average yearly matchday revenue is estimated at £3.5 million per club in League One and £2.1 million in League Two. But is a simple economic fact whereby the best supported teams pull in the most money through their turnstiles.
The highest League One crowd on the opening weekend was 19,615 for Cardiff City versus Peterborough United.
Season ticket prices at the Cardiff City Stadium start from £314 for adults ahead of the 2025/26 campaign. Alternatively, adult matchday tickets commence at £24. So at least £480,000 accrued from a near 20,000 crowd.
MATCH STREAMING
All fixtures in the EFL League One and League Two matches are available for clubs to stream overseas even if selected for international broadcast. UK fans can listen to live audio commentary of their team.
For example, Mansfield Town advertise the service as follow:
“International supporters can buy now for the price of £180 – guaranteeing you all 46 of our League One matches via iFollow Stags.
“Meanwhile, supporters based in the UK can purchase an audio season pass for £45, ensuring you can tune in to the club’s online commentary for every fixture. Monthly audio passes, costing just £4.50, are also available to buy now.”
PLAY-OFF PARTICIPATION
Teams reaching the Play-Offs receive additional gate receipts from their home Semi-Final along with a potential appearance in the Final at Wembley Stadium.
Last season’s attendances for the respective Play-Off Finals were:
- 76,193 for Charlton Athletic 1 Leyton Orient 0 in League One
- 50,947 for AFC Wimbledon 1 Walsall 0 in League Two
It has been suggested that the participating teams received £1 million each as a share of the League One Play-Off ticket sales at Wembley Stadium. You can add extra merchandise sales on to this tally.
In addition, the subsequent Play-Off winners then see an increase in revenue the following season due to being promoted to the division above.
SPONSORSHIP/ADVERTISING
Every club enjoys a main shirt sponsorship partner. Some even have a back of shirt sponsor. Companies involved embrace the energy, automotive, betting and food & drink industries.
Lower division teams can anticipate commercial revenue streams of £2 million to £2.5 million a year.
MERCHANDISE SALES
When I was a kid, everyone wore a scarf in their favourite team’s colours when going to matches. But nowadays the best dressed supporters desire replica shirts.
Prices can vary. Stevenage list adult home shirts at £50. Meanwhile, it is £45 at Barrow. I’m sure a sizeable profit margin exists on these items. Other forms of merchandise are available too.
CUP RUNS
I recall lowly Chesterfield reaching the FA Cup Semi-Finals in 1997 – ultimately bowing out to Middlesbrough in a replay. And in 2013, Bradford City made it all the way through to the Football League Cup Final.
But money-spinning cup runs like this should be looked upon as one-off rather than being guaranteed in the yearly budget.
MAJOR TRANSFERS
Player sales are another factor of income similar to cup runs in so much as they cannot be taken for granted. It obviously depends on having a saleable asset in the first place.
One of the biggest summer transfers saw Luton Town sell Norwegian midfielder Thelo Aasgaard for £3.5 million on 5th July. This created useful funds for Luton following two successive relegations from the Premier League to League One.
And it reduced their wage bill with a high earner departing as the Hatters cut cloth accordingly in the third tier.
Luton Town boss manager Matt Bloomfield said: “It is a bitter-sweet situation for us. Obviously we are disappointed to see Thelo leave. But unfortunately, there was an air of inevitability after our relegation.”
*Credit for the photo in this article belongs to Alamy*
