'It opens the trapdoor for a lot of Championship clubs'

Former Charlton Athletic chief executive Steve Kavanagh breaks down the big financial differences after the Addicks' promotion from League One

It’s all change for Charlton Athletic next season. And we’re not just talking about the fact that they are set to embark on their first Championship campaign since the 2019-20 season.

The Addicks’ promotion from League One also sees them come under new spending controls with clubs in England’s second tier needing to abide by Profit and Sustainability Rules.

Plus there is also a major spike in competition money heading their way.

The 2024-25 season was the start of a new £895million five-year TV rights deal with Sky Sports which means EFL clubs receive a split of £187m per season for their matches to be shown on TV. Sky Sports will screen a minimum of 328 Championship matches - five shown live on each league weekend.

South London Sport: Charlton Athletic Edition caught up with Steve Kavanagh, the club’s former chief executive, to get the lowdown on the changes and challenges that the SE7 outfit face.

Former Charlton Athletic and Millwall chief executive Steve Kavanagh

Picture: Brian Tonks

Kavanagh is a hugely experienced football operator. He was the long-standing chief executive of Millwall and they had made it eight successive seasons in the Championship when he left his position in August 2024. He also held a position of non-executive director on the EFL board for two years. Kavanagh served as vice chairman of the FA Cup Committee, Professional Game Board (PGB) and FA Council. He now heads up gunnercookeSport advising clubs and potential investors.

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Championship clubs receive a bigger slice of solidarity payments from the Premier League. How much of a financial increase is there from being in the Championship compared to League One?

Kavanagh: “What is really important to remember is that the EFL is set up to represent the clubs; all of its profits are distributed to the clubs.

“The distribution methods (of the broadcast revenue) that occur then get quite complicated. But, in broad terms, and oversimplifying it, 80 per cent of the (TV) money goes to the Championship, 12 per cent to League One, and eight per cent to League Two.