How does the parachute payment works

[Waylenstreet]

My brain hurts.

[Cobi]

Divvy would be right normally, but Jonathon Low at GetReading confirms he too was confused by this and says that Reading will get the new deal if the clubs agree it. For some reason the Premier League will allow the three relegated teams this season to be in the new deal when usually they would have received what was agreed in the deal that included 2012/2013.

Sounds like we're quids in. Not that these payments always make a difference - Wolves, Blackburn, Blackpool etc..

[Alexander Litvinenko]

There's no reason why the PL should effectively "bring forward" the parachute payments so that clubs relegated this season get them - I presume it all depends whether the parachute payments are paid from the TV revenue for the current year or from the previous year.

But they just might do that - it's down to what the clubs vote for.

[bcubed]

Dunno.

Think this is the best answer you're gonna get tbh Reading West.

and its succinct to boot

[Divvy]

Divvy would be right normally, but Jonathon Low at GetReading confirms he too was confused by this and says that Reading will get the new deal if the clubs agree it. For some reason the Premier League will allow the three relegated teams this season to be in the new deal when usually they would have received what was agreed in the deal that included 2012/2013.

Sounds like we're quids in. Not that these payments always make a difference - Wolves, Blackburn, Blackpool etc..

Usually, yes. But the Premier League clubs have for some reason voted that the three relegated clubs this season get the payments, where as normally it would be next seasons relegated clubs, as Sporting Intel have now confirmed.

Very good news for Reading FC.

[Jay o/]

We'll it's a pleasant surprise. I wonder why the Premier League clubs voted to bring the payment forward a year to include us? Great news tho, it's £12m more in the coffers.

[Elm Park Kid]

Divvy would be right normally, but Jonathon Low at GetReading confirms he too was confused by this and says that Reading will get the new deal if the clubs agree it. For some reason the Premier League will allow the three relegated teams this season to be in the new deal when usually they would have received what was agreed in the deal that included 2012/2013.

Sounds like we're quids in. Not that these payments always make a difference - Wolves, Blackburn, Blackpool etc..

Usually, yes. But the Premier League clubs have for some reason voted that the three relegated clubs this season get the payments, where as normally it would be next seasons relegated clubs, as Sporting Intel have now confirmed.

Very good news for Reading FC.

I guess that as 10 of the 20 Premier League clubs could realistically be relegated at this point, that vote was too hard to win

[themadstad]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

Papers have said that teams relegated from the premier league would receive £60m from next season. That's different to teams relegated from next season will receive £60m. New package kicks in next season, which is why there's higher parachute payments and so you'd expect the money paid out next season would be higher to reflect, the figure which they've now agreed.

I'd just expect us to receive these higher payments without it having to be confirmed by sporting whatever based on what is in the media.

The structure of this £60m they hasn't been announced has it?

[Clyde1998]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

Papers have said that teams relegated from the premier league would receive £60m from next season. That's different to teams relegated from next season will receive £60m. New package kicks in next season, which is why there's higher parachute payments and so you'd expect the money paid out next season would be higher to reflect, the figure which they've now agreed.

The structure of this £60m they hasn't been announced has it?

I think it's £20m, £20m, £10m, £10m.

[themadstad]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

Papers have said that teams relegated from the premier league would receive £60m from next season. That's different to teams relegated from next season will receive £60m. New package kicks in next season, which is why there's higher parachute payments and so you'd expect the money paid out next season would be higher to reflect, the figure which they've now agreed.

The structure of this £60m they hasn't been announced has it?

I think it's £20m, £20m, £10m, £10m.

That's what I was thinking based on the overall 25% increase reflecting on the year for year similarly.

[Clyde1998]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

Papers have said that teams relegated from the premier league would receive £60m from next season. That's different to teams relegated from next season will receive £60m. New package kicks in next season, which is why there's higher parachute payments and so you'd expect the money paid out next season would be higher to reflect, the figure which they've now agreed.

The structure of this £60m they hasn't been announced has it?

I think it's £20m, £20m, £10m, £10m.

I've found it: £24m, £18m, £9m, £9m

http://www.thedaisycutter.co.uk/2013/03 ... d-landing/

[Jay o/]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

not accordingly to the Daily Mail (sporting intelligence team). they said we would have been awarded £48m and the £60 new deal began next season and affected those relegated in 2013/14, but the Premier League vote agreed to bring it forward 12 months. not that it matters a jot. we're better off for it. good news for us!

[themadstad]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

not accordingly to the Daily Mail (sporting intelligence team). they said we would have been awarded £48m and the £60 new deal began next season and affected those relegated in 2013/14, but the Premier League vote agreed to bring it forward 12 months. not that it matters a jot. we're better off for it. good news for us!

Then if that was to be the case it would have been 4 years since the increase to £48m as Burnley received that new deal announced late 09/10 season and they were relegated 09/10. They are 3 year deals that run usually.

Seems they possibly backtracked on an error to me?

[Jay o/]

Towards the end of 09/10 season the new £48m over 4 year deal was announced and I seem to recall Burnley one team that was a beneficiary of the new payments. Wasn't it a 3 year deal? So that makes 13/14 the start of a new 3 year deal as in payments to teams, therefore making us the first beneficiary.

not accordingly to the Daily Mail (sporting intelligence team). they said we would have been awarded £48m and the £60 new deal began next season and affected those relegated in 2013/14, but the Premier League vote agreed to bring it forward 12 months. not that it matters a jot. we're better off for it. good news for us!

Then if that was to be the case it would have been 4 years since the increase to £48m as Burnley received that new deal announced late 09/10 season and they were relegated 09/10. They are 3 year deals that run usually.

Seems they possibly backtracked on an error to me?

hence all the confusion.

[Clyde1998]

You get a set parachute payment deal for the four years, but the parachute payment amounts for newly relegated clubs change every three years, with the TV deals.

[themadstad]

You get a set parachute payment deal for the four years, but the parachute payment amounts for newly relegated clubs change every three years, with the TV deals.

Yeah so that makes us the new beneficiaries then. Now they'll look at how much we will receive over each of the next four years.

[SPARTA]

You get a set parachute payment deal for the four years, but the parachute payment amounts for newly relegated clubs change every three years, with the TV deals.

Yeah so that makes us the new beneficiaries then. Now they'll look at how much we will receive over each of the next four years.

Which is proposed £24m, £18m, £9m, £9m and the Football League are contesting it.

[TommyF]

Wouldn't it be bizzare if we suddenly qualify for this bumper TV deal when 9 months ago all we heard in the media was how it was vital for all the PL clubs to stay up and qualify for the new deal? Now this seasons clubs get the new amount anyway, and we get the new parachute money as well?

It's 'vital' to stay up because being in the PL next season is worth £100m. £60m across 4 years seems pretty trivial in comparison to that.

Not really as that £100m includes the parachute payments.

Whenever they talk about promotion to the premier league being worth xx million, they mean that is the guaranteed minimum amount they will get over 5 years. You'll get more in that time for staying up (£40m+ or so a season) plus a guaranteed £60m (was £48m) if you get relegated.

The figures quoted never say £100m per season, merely what promotion is worth

[winchester_royal]

Wouldn't it be bizzare if we suddenly qualify for this bumper TV deal when 9 months ago all we heard in the media was how it was vital for all the PL clubs to stay up and qualify for the new deal? Now this seasons clubs get the new amount anyway, and we get the new parachute money as well?

It's 'vital' to stay up because being in the PL next season is worth £100m. £60m across 4 years seems pretty trivial in comparison to that.

Not really as that £100m includes the parachute payments.

Whenever they talk about promotion to the premier league being worth xx million, they mean that is the guaranteed minimum amount they will get over 5 years. You'll get more in that time for staying up (£40m+ or so a season) plus a guaranteed £60m (was £48m) if you get relegated.

The figures quoted never say £100m per season, merely what promotion is worth

Teams next season will receive considerably more than £40m all told.

[Cobi]

@_lewjones 5h
Relegated, then reinstated? The football league look at plans to deny relegated trio admission back into the football league #readingfc #qpr

We are staying up, say we are staying up...