Watford to net a £1million cup bonus

Watford are set to rake in up to £1million after reaching the last four of the Carling Cup.

The cash-strapped club thumped managerless Premiership side Portsmouth 3-0 at Vicarage Road last night, thanks to two Heidar Helguson goals and one from Bruce Dyer, to set up a money-spinning two-legged semi-final.

In tonight's draw, they are certain to earn a lucrative tie against either Chelsea, or the winners of Manchester United against Arsenal or Spurs versus Liverpool.

Chairman Graham Simpson said: "Whoever we face we will make around £700,000, but if Manchester United get through and we play them it could be £1million because of their extra ground capacity."

In the semi-finals, all the matches are screened live by Sky, who pay around £100,000 per game.

Clubs also receive 45 per cent of the matchday profits from their two matches, which includes gate money as well as revenue from sponsorship, merchandise and hospitality boxes. It represents a huge windfall for Watford, who recently announced losses of £4.5m for the last financial year and still have to pay off a £7.6m loan which enabled them to buy back Vicarage Road in August.

Simpson admitted: "For a club who have been in our position, it is a fairytale to get to the semi-finals. Bearing in mind the financial constraints he has had to put up with, it is an amazing achievement by Ray Lewington to get us to our second cup semi-final in three years.

"Although it is a wonderful boost for the club, we are still not out of the woods financially." Simpson says he doesn't mind who Watford play in the next round and added: "If we play like last night and with that kind of spirit, who knows?