Leicester City moved one step closer to the Premier League title with a 1-1 tie on Sunday against financial soccer giant Manchester United. The Foxes will clinch the title if Tottenham Hotspur fails to beat Chelsea on Monday or if Leicester secures merely a draw in one of its final two games (Leicester has lost only three times in 36 matches).
The expected title would represent one of the biggest upsets in the history of sports. At the start of the season, bookmakers had the odds of Leicester winning the Premier League crown at 5,000 to 1 (on par with an Elvis sighting) after the squad almost faced relegation a year ago. Assuming City clinches, the dream season will result in at least $100 million in additional revenue in the short-term for Leicester, according to a study to be released this week by sports research firm Repucom.
It’s a massive boost for a club that posted revenue of $152 million last year in its first Premier League season in a decade (United's revenue was $625 million). This year’s crown would be the team's first ever in the top division and carry nearly $30 million in additional “Merit Payment” compared to its 2014/15 take based on the final Premier League standings. Leicester’s total payments from the Premier League would hit at least $133 million this season.
Leicester was already playing games at near capacity at King Power Stadium, but was still able to increase matchday revenue this season by roughly $5 million, according to Repucom. The real payday for the Foxes comes from qualifying for the UEFA Champions League next season. It carries participation and performance bonuses of more than $50 million. The additional matchday revenue from Champions League games will kick off at least $5 million as well.
Leicester’s success sets it up for a windfall in other areas going forward. “The increase in visibility the club has received this season translated into potential brand exposure for sponsors, which combined with the association in aligning to the Premier League champions will be key to increasing the club’s commercial revenues this summer,” says Spencer Nolan, Head of Consulting, Repucom UK&I. “The task now is to optimize the value of those assets and ensure they attract the incomes Leicester City could now generate.”
Leicester’s TV audience is up 23% this season globally which will boost the value of sponsorship packages. The Champions League games will also provide further exposure for sponsors. Repucom estimates the value of City’s jersey naming rights could jump 500%.
Leicester’s social media accounts are also on fire. Its’
Continued success for the Foxes next season will be a further boom for the club’s bean counters thanks to the Premier League’s new three-year, $7.5 billion TV contract with SKY and BT Sport. Repucom estimates the Premier League champ will score a payout of $213 million next season. The early odds for the 2016/17 Premier League title have Leicester at 25-1, only sixth most likely to win with Manchester City the heavy favorite. Don't count out Leicester. They've overcome much, much longer odds than that.
