by Sutekh »
29 Apr 2021 14:20
29 Apr 2021 14:20
As I understand things, based on the last I heard, was that clubs relegated from the PL from season 2015/16 onwards have been receiving parachute payments based on a percentage of the equally shared broadcasting rights each PL club receives. These payments are paid to relegated clubs for 3 seasons (previously it was 4 seasons) however the 3rd season’s payment is only payable if the club concerned was in the PL for more that 1 consecutive season before relegation
The payments made are 55% of what would have been a club’s broadcasting rights value if they had not been relegated paid in the first season, 45% paid in the second season and 20% for the third season if that club qualified for a payment.
If a club is promoted back to the PL within those seasons then they obviously will no longer receive the payments.
Let us know if any of the above is wrong or has been changes recently.
I do not believe that any parachute payments are redistributed to the FL should relegated clubs be promoted back within those seasons and this would appear to be borne out by the fact that the FL are now in the process of asking the PL to give them a share of the £83m payments that were due to Norwich and Watford had they not been promoted.
Overall I think the whole idea of parachute payments stinks as it can encourage clubs to spend beyond their means and utterly screws over the idea of any level playing field (such that it would be) in the Championship, plus it stops the notion of “salary reduction on relegation” clauses in contracts.