Liverpool to make millions after Leeds United promotion to Premier League - finance expert explains

The line-up for the 2025-26 Premier League season is starting to take shape.

As the current campaign reaches a culmination, relegations and promotions have already been secured. Southampton have been down from the top flight for several weeks. And last weekend, Leicester City joined the Saints dropping immediately back to the Championship. The Foxes won the second tier last weekend but they have been consigned back to the Football League after a 1-0 loss to Liverpool.

It appears that Ipswich Town will also be going straight back down. The Tractor Boys need to win all of their remaining five games and overturn a 20-goal difference with 17th-placed West Ham. The Hammers, however, need just a point to stay up.

The chasm between the Premier League and Championship is growing. The clubs that are returning to the Promised Land will be hoping they can break the mould, although it is becoming increasingly more difficult.

Leeds United will be back rubbing shoulders in the upper echelons along with Burnley. They have both secured automatic promotion. Leeds thrashed Stoke City 6-0 on Easter Monday to stay top. They then needed a favour from second-placed Burnley against third-placed Sheffield United. The Clarets obliged with a 2-1 triumph at Turf Moor. Burnley celebrated in front of their fans at full-time while Leeds supporters stayed outside Elland Road to toast the feat.

Liverpool supporters will be glad that two northern teams are back. Both are simple away-day trips that can be done within one and a half hours if there is no traffic. That is much better than 200-plus mile jaunts to Southampton and Ipswich.

And because Leeds and Burnley are making relatively swift returns to the Premier League, the Toffees will benefit financially. The Whites were relegated in the 2022-23 campaign, with the Clarets unable to avoid the drop last term under Vincent Kompany.

Both clubs have received parachute payments from the Premier League and would have been due them for 2025-26 had they not gone up. According to football finance expert Kieran Maguire, Leeds and Burnley would have been in line for £51 million. Instead, that pot of money will be divided equally between the current top-flight teams, meaning Liverpool will land £2.55 million.

Maguire, a lecturer at the University of Liverpool, posted on X: “When Leicester & Southampton were relegated in 2022/23 and promoted the following season £102m in parachute payments were saved...these savings have been split between Premier League clubs. Should Burnley and Leeds be promoted today then a further £51m will be saved...this will also be divided between PL clubs.”

Maguire added: “Instead of receiving parachute payments of £35m and £16m next season Burnley and Leeds will both be picking up £110m plus in the Premier League. The parachute payments not being paid out will be divided by the 20 PL clubs.”

Should Sheffield United also book their immediate return to the Premier League via the play-offs, that will mean that more savings from parachute payments will be distributed to the current clubs. The Blades are guaranteed to finish third but have never been promoted through the play-offs in the club’s history, having had nine attempts.