How the creation of a Premier League 2 could impact Sheffield Wednesday

Following calls from Leeds United owner Andrea Radrizzani to create a potential Premier League 2 - we explore how that could impact Championship, League One and Two clubs.

Friday, 12th October 2018, 9:38 am
Updated Friday, 12th October 2018, 12:11 pm
Sheffield Wednesday manager Jos Luhukay and Leeds United owner Andrea Radrizzani.

The Whites owner cited the TV revenue difference between the Football League and the Premier League - believing his club are being shortchanged by the broadcast deals.

With that followed a suggestion to form a second version of England's top flight, all of which makes for an interesting read.

Sheffield Wednesday manager Jos Luhukay and Leeds United owner Andrea Radrizzani.

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Confused as to what it might mean should the change come into place? We've answered four simple questions on why it could be created, what it would mean for current second tier clubs - and League One and Two clubs, how it would form and when could we see a Premier League 2 come into place.

Why create a Premier League 2?

Radrizzani believes a second Premier League should be created so Championship clubs can receive more television revenue.

Sky currently pays £90million to the EFL to stream its games, which works out at around £7million per club compared to top flight clubs who receive at least £100milion before a ball has been kicked for the league's domestic and international broadcasters.

Clubs relegated from the Premier League are given £75million in parachute payments over the subsequent two seasons if they stay in the second tier.

For recently relegated clubs, they gain a significant financial advantage over teams currently in the league - Radrizzani believes it is "not sustainable".

How would a Premier League 2 impact current Championship, League One and Two clubs?

Because each EFL club is awarded the same amount of TV money, it works out that clubs at the top of the Championship are earning the same amount as teams at the bottom of the Football League by the EFL's broadcasters.

A Premier League 2 would likely separate from League One and Two, so second tier clubs are earning more than England's bottom two tiers and perhaps earning closer to the money Premier League club are receiving.

Radrizzani suggested the change would ease the pressure on Championship owners when worrying about their finances. Indeed, he says that it would prevent potential bankruptcy and frequent changes in ownership.  

How would a Premier League 2 form?

Any new second tier - whether it be called the Premier League 2 or something else - would effectively be a new name for the Championship, though would prove a greater financial gain for clubs.

Like the current system, it would likely feature 24 clubs and while relegated Premier League clubs could still be awarded parachute payments, the current financial gap should be shortened.

When could we see a potential Premier League 2?  

The EFL's current TV deal with Sky will increase to £120million next year and will run until it's initial expiry date at the end of the 2023/34 season.

However, there is no reason to believe why a Premier League 2 could not be created earlier should both parties have a desire to strike a deal.