Premier League Prize Money Explained: Who Gets What and Why | OneFootball

Only one team walks away with the Premier League trophy each season—but when it comes to prize money, there's plenty to go around.

Every year, all 20 clubs in the league receive a hefty payout simply for participating in the world’s most-watched domestic competition. On top of that, teams earn additional sums based on their final position in the table, how often they're shown on television, and several other factors tied to the league’s massive broadcasting deals.

These payments can make a significant financial difference—especially for smaller clubs—helping to level the playing field and secure financial stability. For newly-promoted sides, for example, the influx of cash can be transformative, allowing them to invest in player recruitment, infrastructure, and long-term planning. Even for mid-table or relegation-threatened clubs, the difference of just a few places in the standings can equate to millions in extra revenue.

Here, we break down exactly how the Premier League's prize money is distributed, using the latest available data from the 2023-24 season.

How Premier League Prize Money Works

Liverpool is likely to be crowned Premier League champion in 2024-25. / IMAGO/Propaganda Photo

The Premier League distributes its payments to clubs through a central revenue system made up of six main components: three fixed and three variable.

The fixed payments consist of two equal shares—one from domestic broadcasting rights and one from international broadcasting rights—as well as a share of central commercial revenue.

In the 2023-24 season, each of the 20 clubs received £31.2 million ($41.6 million) from UK broadcasting, £55.7 million ($74.2 million) from international broadcasting, and £8.2 million ($10.9 million) from central commercial deals. Altogether, that amounts to £95.1 million ($126.7 million) guaranteed to every club simply for being part of the league.

The variable payments are influenced by three key factors: a club’s final position in the Premier League table, the number of times their matches are broadcast live in the UK—referred to as “facility fees”—and their portion of the merit-based revenue from international broadcast deals.

These three streams can significantly alter the total payout. In 2023/24, Manchester City, who finished top of the league, earned £175.9 million ($234.4 million) across all six revenue streams. In contrast, Sheffield United, who finished bottom, earned £109.7 million ($146.2 million), showing just how much league position and TV exposure influence a team’s financial reward.

Prize Money by League Position

The Premier League's central payments to clubs in 2023-24. / Premier League

Merit payments in the Premier League are allocated on a sliding scale, determined by a club’s final position in the table, with the total derived from a combination of domestic and international broadcast revenues.

In the 2023-24 season, each position higher in the standings was worth roughly £2.8 million ($3.7 million), with champions Manchester City earning £56.4 million ($75.1 million), while bottom-placed Sheffield United received just £2.9 million ($3.9 million).

These figures fluctuate from season to season based on the league's overall revenue. In 2022/23, for example, the difference per position was slightly higher, averaging around £3.1 million ($4.1 million).

Facility Fees and TV Appearances

While facility fees don’t fluctuate as dramatically as merit payments, there’s still a noticeable disparity in how much clubs receive based on how often their matches are broadcast in the UK—particularly when it comes to the so-called “big six.”

In 2023/24, Manchester City, Manchester United, Arsenal, Liverpool, Chelsea, and Tottenham Hotspur were the top earners in facility fees, a result of consistently having the most televised matches thanks to their massive fanbases and global appeal—regardless of whether they actually performed at the highest level.

Clubs like Everton, Newcastle United, Aston Villa, and West Ham United also earned significant amounts in this category. However, the general trend is clear: the smaller the club—and often the smaller their stadium—the fewer games they have on TV and the less money they receive in return.

Crystal Palace provides a clear example of this imbalance. Despite finishing 10th, the Eagles received just £13.5 million ($18 million) in facility fees, while Everton, who finished down in 15th, earned £20.2 million ($26.9 million). It’s a system that continues to disproportionately benefit the bigger, more historically prominent sides—regardless of current form or league position.

Relegation and Parachute Payments

Southampton was relegated in 2024-25. / IPS/IMAGO

Being relegated is, of course, something every club desperately tries to avoid—not just from a sporting standpoint, but a financial one too. The lower a team finishes in the Premier League, the smaller their share of merit payments and broadcast revenue. And once relegated, the financial hit becomes even more significant.

To help soften that blow, the Premier League has a system in place known as "parachute payments." These payments are designed to support relegated clubs as they adjust to life below the top flight, compensating for the sharp drop in income from ticket sales, sponsorships, and especially broadcast deals once they move down to the Championship.

Under this system, relegated clubs receive a scaled portion of the Premier League's equal-share broadcasting revenue over up to three seasons.

In the first year after relegation, they are given 55% of what they would’ve earned from the basic TV distribution in the top flight. This amount falls to 45% in the second year, and if the club had been in the Premier League for more than a single season prior to going down, they are also eligible for a third-year payment worth 20%. However, if they achieve promotion during this time, any outstanding parachute payments are cut off and redistributed among the remaining Premier League clubs.

In recent years, these parachute payments have been worth around £30 million ($39.9 million) per season to each relegated club. The system has come under increasing scrutiny, with critics arguing it gives recently relegated teams an unfair financial edge in the Championship.

Studies have suggested that these clubs are roughly three times more likely to win promotion back to the Premier League, fueling a “yo-yo” effect where the same teams repeatedly move up and down between divisions.

Historical Growth in Prize Money

Manchester United won the inaugural Premier League title in 1993. / Colorsport/IMAGO

Unsurprisingly, Premier League prize money has grown significantly since the competition’s inception in the 1992-93 season.

Back then, the total prize pool shared among the league’s 22 clubs was just £38 million ($50.6 million). Since, as the league has exploded in global popularity and established itself as the most-watched domestic soccer competition in the world, that figure has risen exponentially—peaking at just under £2.85 billion ($3.79 billion) in 2023-24.

With the league only going from strength to strength, the financial trajectory shows no signs of slowing down.

Broadcasting deals continue to expand both domestically and internationally, streaming platforms are driving up media rights values, and authorities are increasingly cracking down on illegal streams. Add to that the rising commercial revenue and potential for more international fixtures, and it’s clear the money involved in the Premier League is set to keep climbing.