Report shows cup cash benefits
A new report has shown that the FA Cup has generated £650million for clubs in the top five divisions over the last 10 years.
Last Updated: 27/01/12 3:34pm
The financial impact of the competition has been revealed in a new report by the Sports Business Group at Deloitte.
The findings demonstrate that a total of almost £650million in prize money, TV payments and gate receipts have been generated by participating clubs in the ten years between 2001/02 and 2010/11.
Focusing on case study clubs from five tiers of English football, it highlights the substantial financial benefits for clubs at all levels of the football pyramid.
Last season's eventual runners up Stoke reached the FA Cup final for the first time in their history. The Potters' cup run earned them around £3.5million, including £1.8million prize money from the semi-final and final alone.
For clubs further down the football pyramid, a draw against higher league opposition provides an opportunity for a cash windfall as well as the chance to go down in history as one of the competition's giant killers.
In 2004, Millwall reached the final, despite being outside the top flight, and whilst they lost on the pitch to Manchester United, they certainly won off it. Revenues from the competition contributed to 29% of total club revenues for the season.
Last season, League One side Leyton Orient famously took Arsenal to a fifth-round replay at the Emirates, a run that generated circa 30% of total club revenues for the year. The importance of the FA Cup's financial impact is also highlighted by League Two side Accrington Stanley's run to the fourth round in 2009/10. Reaching this stage of the competition provided the club with a cash injection of circa £150,000 at a time when the club faced an uncertain time due to financial difficulties.
For non-league clubs, the financial impact of the FA Cup is even more important. In 2007/08, Havant and Waterlooville reached the fourth round, twice having led against Liverpool at Anfield before eventually losing 5-2. The Cup run earned them circa £600,000, 70% of the club's total estimated revenue for the year.
Last season's giant killers-elect Crawley Town earned themselves a dream fifth round draw at Manchester United after beating Torquay 1-0 in the previous round. The lucrative tie at Old Trafford earned the club an estimated massive £1million pay day, two thirds of the circa £1.5million they earned during the competition.
The figures outlined in the report show how a good run in the FA Cup is beneficial to clubs at all levels with revenues generated through prize money, TV payments and gate receipts.
Prize money and TV payments totalled £230million over the 10-year period with £24.5million paid out in 2010/11, whilst gate receipts are estimated to have exceeded £400million over the same period driven by total attendances of 22.7million.
FA general secretary Alex Horne commented: "The FA Cup is the most authentic knock-out competition in the world. Every year it delivers magical moments for fans.
"This season, we've already witnessed Tamworth gripped by FA Cup fever and Oldham supporters turning out in force taking 6,500 fans to their tie at Anfield.
"What this report reveals is the huge financial incentives for teams participating in The FA Cup. You only have to look to Crawley Town last season, who earned £1million from a single game against Manchester United, a truly phenomenal amount of money for a then non-league football club."
Orient chairman Barry Hearn commented: "The FA Cup is the biggest Cup competition in the world.
"It's a big chance for all small clubs to have their moment in the sun and get a little bit of glory, whilst the financial returns are also fantastic.
"It is miles ahead of everything else because of the pleasure it gives to ordinary football fans throughout the entire country, providing memories that last for generations not just for weeks."