Birmingham City dream lands another huge boost after Knighthead make up £50m gap
Birmingham City are looking to compete for promotion to the Premier League upon their return to the Championship
Tom Wagner, the chairman of Birmingham City, addresses the supporters at St Andrew’s @ Knighthead Park
Only four Championship teams will receive parachute payments the next season, which will increase Birmingham City’s chances of defying the norm and contending for promotion.
Sheffield United will be the only Championship team still receiving parachute payments for the upcoming season after losing to Sunderland in Saturday’s play-off final. After being relegated to the Premier League in 2024, the Blades still owe money for two more years.
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Since Burnley and Leeds United were promoted to the Premier League, their parachute payments have been reset. At the opposite end of the spectrum, Luton Town was relegated twice in a row.
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In the past, Premier League teams who get parachute payments have been able to outspend their Championship competitors.
Southampton, Leicester City, and Ipswich Town will all receive close to £50 million to help them cope with the shock of losing their place in the top flight and returning to a league with different spending constraints.
Payments for Norwich City and Watford’s third and last season after their 2022 relegation from the top division were just received.
Because of all of that, the 2025–2026 Championship should be more competitive than it has been in a long time, which is ideal for the just promoted Blues.
After a historic League One season, the Blues are back in the second division and hoping to contend for a spot in the Premier League. Since the 2011–12 season, the Blues have not placed higher than tenth in the Championship.
With American investment firm Knighthead, led by Tom Wagner, making significant investments in an attempt to revive Premier League football at St Andrew’s, the club now has more financial clout than ever before.
Wagner has said on multiple occasions that Blues’ revenue – which is helped by lucrative commercial deals with Nike, Undefeated, Delta Airlines and Vertu – is on track to match the teams receiving parachute payments next season.
Speaking to The Times in April, Wagner said: “If our revenue progresses as we expect into next season, which is basically a certainty, we will be the highest revenue-generating club in the Championship ever not receiving parachute payments — and we will be on a par with those receiving parachute payments.
“If we then progress one year further, and we’re fortunate enough to end up in the Premier League, we’ll be a mid-table club or better in total revenue, first year in.”
