The Importance of the FA Cup: History and Financial Impact

“FA Cup Final 2014 Wembley stadium” by dom fellowes, licensed under Creative Commons Attribution 2.0 Generic (CC BY 2.0), https://creativecommons.org/licenses/by/2.0/.

The FA Cup is the world’s oldest national football competition. First played in the 1871/72 season, 15 teams entered and London’s Wanderers F.C. won the tournament, though they weren’t awarded the trophy until a month after the final.

Morton Betts was the only goalscorer in the 1-0 win. Betts played the final under a false name, and while being a fullback, won his only England cap as a goalkeeper. 

Betts is an example of the interesting tales that the FA Cup has told, and it continues to do so.

Significant underdog stories are a competition hallmark—the 2025/26 edition saw sixth-tier Macclesfield F.C. knock out reigning champions Crystal Palace, while in 2013 Wigan Athletic combined Premier League relegation with an FA Cup win, meaning they competed in both the Championship and UEFA Europa League the following season. 

A cornerstone of English footballing culture, the FA Cup remains a significant and meaningful competition, acting as a key contributor to clubs’ finances.

FA Cup Revenue Streams

Depending on how far a team progresses, clubs who qualify for the FA Cup can play up to eight games, giving them up to eight opportunities to secure an often vital financial boost.

Matchday revenue is of course a large factor, with FA Cup rules dictating that funds from gate receipts are split evenly, regardless of who is at home.

45% is given to each team, with the remaining 10% going to the FA, meaning for a smaller club, drawing a Premier League giant is a dream.

Broadcast revenue is also a substantial contributor. Bringing larger audiences, it tends to be Premier League clubs who broadcasters choose to televise, providing the smaller clubs they face with a revenue stream they wouldn’t normally access.

The FA Cup’s Impact on Lower-League Clubs

While the investment that comes with large-scale ownership can make FA Cup revenue less relied-upon to a larger club’s financial sustainability, the competition holds heightened importance for those with less backing.

Victory in an FA Cup first round fixture, which features all League One and League Two clubs as well as 32 non-league sides, wins a team £47,750, with a further £79,500 up for grabs in the second round.

These figures increase as the tournament advances, and the eventual winner of the competition will receive £2,120,000.

It is clear that any wins in the FA Cup can significantly aid lower-league sides who often struggle with finances, though it is in matchday revenue where the real difference can be made.

Upon reaching the third round of the tournament, the teams from the third tier and below are joined by Premier League and Championship sides, which is where the evenly split gate receipts can be considerable. 

In the 2025/26 season, Exeter City drew Manchester City in the third round, and despite a 10-1 defeat, it is estimated that the League One side earned up to £400,000 from the game. 

This edition is the second since FA Cup replays were scrapped in 2024, which involved a return fixture played if the initial match ended in a draw.

A rule that was in place in the inaugural FA Cup competition in 1871/72, it was the reason that Wanderers F.C. progressed to the final that year. Despite drawing their semi-final 0-0, Glasgow’s Queen’s Park could not afford the cost of travel for a replay.

Football has evolved since then, and replays have been particularly lucrative if a smaller side could hold a top team to a draw as they were rewarded with the attractive revenue that comes with a second fixture.

Again using Exeter City as an example, the club were able to wipe their heavy debts in 2005 after a draw to Manchester United gave them a televised replay to make money from.

The reason for the removal of the replay was partly due to UEFA’s expanding calendar.

Over 150 years on from its first edition, the FA Cup continues to be a mainstay of English football. While the removal of replays conveys pressures of the modern European football landscape, the magic of the cup continues to be an environment where youth players and smaller clubs can thrive.

As discussed, a large aspect of this is from a business perspective. To learn more about the exciting world of sports business and management, as well as many other areas in sport, discover our course offerings.

Article by Zakaria Anani