As a result, they'll now be playing their football in the top flight and will bring in a minimum of £170million over the next three years, a total that could rise to £290million if they retain their Premier League status.
The contest got off to a troubling start as Tom Lockyer collapsed on the pitch and was stretchered off after just 11 minutes of the game, but that didn't stop Luton from dominating.
As well as having two goals disallowed, they took the lead through Jordan Clarke's well-taken effort midway through the first period.
With 10 shots to their name, the Hatters were firmly on top in the first 45, leaving Coventry little choice but to come out fighting in the second.
They certainly did that and got their reward after 66 minutes when danger man Viktor Gyokeres broke free down the left before finding Gustavo Hamer who slotted home to make it 1-1.
Both sides had opportunities to find the net in the remainder of the game, but they couldn't be separated as the contest went to extra-time.
Action was limited during the 30 minutes, however Joe Taylor did find the back of the net after Jonathan Panzo's error just four minutes from time, however it was ruled out for offside, leading the game to penalties.
It's a cruel way to decide a game of such magnitude, but it was Fankaty Dabo of Coventry who missed from the spot to send Luton through as 6-5 penalty shootout winners.