How does the parachute payment works

[Reading West]

Hi All

I suppose this could've been placed in General football but unfortunately this will be relevant to Reading in the very near future. The relegated teams this season will receive £48 m over 4 years so I presume this will be 12 m per year(is it linear like that ??). Well suppose Reading gets promoted at the end of next season back to the premiership, if the parachute payment is over 4 years, is there some ruling to say that it would stopped being paid if a relegated team is promoted back within 4 years ??? or would the team promoted back to the premier league receive BOTH the ongoing parachute payments PLUS the usual payments for being a premier league team again.

Thanks in advance for clearing this up for me

[ZacNaloen]

My recollection is that the rest of the parachute money will get evenly distributed across the league if we get promoted before it runs out.

[Norfolk Royal]

Dunno.

[MouldyRoyal]

My recollection is that the rest of the parachute money will get evenly distributed across the league if we get promoted before it runs out.

This is my understanding but I have no evidence to back that up.

[Clyde1998]

Hi All

I suppose this could've been placed in General football but unfortunately this will be relevant to Reading in the very near future. The relegated teams this season will receive £48 m over 4 years so I presume this will be 12 m per year(is it linear like that ??). Well suppose Reading gets promoted at the end of next season back to the premiership, if the parachute payment is over 4 years, is there some ruling to say that it would stopped being paid if a relegated team is promoted back within 4 years ??? or would the team promoted back to the premier league receive BOTH the ongoing parachute payments PLUS the usual payments for being a premier league team again.

Thanks in advance for clearing this up for me

Accoring to the BBC - it's now been upped to £60m over four seasons (£16m for the first two seasons; £8m for the next two). link

If a team gets promoted back to the Premier League during the parachute payment period, then the payments stop.

I believe, also, that if a team gets relegated to League One during the period it stops as well.

[stickywhisky]

http://www.bbc.co.uk/sport/0/football/22171365

[ZacNaloen]

Okay so nothing agreed yet with regards to the solidarity payments

[M Brook]

Accoring to the BBC - it's now been upped to £60m over four seasons (£16m for the first two seasons; £8m for the next two). link

It is going to be upped to £60m. The current payments total £48m - £16m for the first 2 years and then £8m for the 3rd and 4th year.

[Stuka]

Will it be upped in time for next season?

[Colin Cheeselog]

I's donts nos hows the singular parachutes paysments workss eithers.

[SPARTA]

We get this years TV money at the end of this season, then we receive the parachute money at the end of next season for 4 years - unless we win promotion back to the PL; and then the remainder of that parachute money is distributed evenly across the rest of the Championship (I believe).

The new £60m deal doesn't affect us, that will go to the teams relegated from the PL next season. We get the £48m (£12m x4 seasons, or is it something like £16m and £16m, then £8m and £8m?).

[Royal With Cheese]

What was the question?

[Royal Biscuitman]

My recollection is that the rest of the parachute money will get evenly distributed across the league if we get promoted before it runs out.

So it's in the best interests of struggling championship teams who won't make the playoffs theirselves to help us gain promotion back to the prem as they will get a nice £ windfall.

[ZacNaloen]

Well, when you put it like that...

[TBM]

http://www.bbc.co.uk/sport/0/football/22171365

Clubs relegated from the Premier League will receive in excess of £60m over a four-year period from next season

So does that mean we will get it, or teams relegated next season will!?

[SPARTA]

http://www.bbc.co.uk/sport/0/football/22171365

Clubs relegated from the Premier League will receive in excess of £60m over a four-year period from next season

So does that mean we will get it, or teams relegated next season will!?

Assuming you haven't read my reply or the others - No. Next years relegated PL sides will get that.

[Clyde1998]

http://www.bbc.co.uk/sport/0/football/22171365

Clubs relegated from the Premier League will receive in excess of £60m over a four-year period from next season

So does that mean we will get it, or teams relegated next season will!?

Sounds like it starts next season - so we won't be getting the £60m.

[Z175]

My recollection is that the rest of the parachute money will get evenly distributed across the league if we get promoted before it runs out.

So it's in the best interests of struggling championship teams who won't make the playoffs theirselves to help us gain promotion back to the prem as they will get a nice £ windfall.

Not really as all the teams they play the next season/ compete with to sign players will also get exactly the same! In a way though, it is in their interests to want the parachute teams to go back up but more to remove a side with an unfair advantage. But, even then, theres an argument that with a potential 12 Championship sides on big TV money, that cash will filter around the other 12 clubs.

Also, I'm not sure how significant it is in terms of promotion, none of the 5 clubs with parachute payments is currently in the top 6, and Wolves and Blackburn could well get relegated! Birmingham, Blackpool and Bolton haven't set the world on fire either.

I think that shows that the current level is too low - with £60m+ revenue a season in the PL, the parachute payments really are just for staving off total financial ruin, as those 5 are showing.

The other eligible team would have of course been West Ham - which shows that parachutes do allow a relegated side to keep a PL squad for the first season. With the extension to 4 years from 2, that period that WHU, Birmingham and Newcastle have used to their advantage will have increased.

As above its not clear when the increase from £48m to £60m might kick in, but we will still benefit in the subsequent 3 seasons even if it is not
next year, unless we get promoted again! Hopefully we will be sensible with our cash (£8m for Jordan Rhodes?) and use it wisely to build a new title winning squad. With the troubles of the 5 teams above and QPR's already mammoth wages, we should be kicking ourselves if we dont!

[JC]

http://www.bbc.co.uk/sport/0/football/22171365

Clubs relegated from the Premier League will receive in excess of £60m over a four-year period from next season

So does that mean we will get it, or teams relegated next season will!?

Sounds like it starts next season - so we won't be getting the £60m.

See below

http://www.express.co.uk/sport/football ... ated-clubs

Quite clearly states we would get it

[Clyde1998]

My recollection is that the rest of the parachute money will get evenly distributed across the league if we get promoted before it runs out.

So it's in the best interests of struggling championship teams who won't make the playoffs theirselves to help us gain promotion back to the prem as they will get a nice £ windfall.

Not really as all the teams they play the next season/ compete with to sign players will also get exactly the same! In a way though, it is in their interests to want the parachute teams to go back up but more to remove a side with an unfair advantage. But, even then, theres an argument that with a potential 12 Championship sides on big TV money, that cash will filter around the other 12 clubs.

Also, I'm not sure how significant it is in terms of promotion, none of the 5 clubs with parachute payments is currently in the top 6, and Wolves and Blackburn could well get relegated! Birmingham, Blackpool and Bolton haven't set the world on fire either.

I think that shows that the current level is too low - with £60m+ revenue a season in the PL, the parachute payments really are just for staving off total financial ruin, as those 5 are showing.

The other eligible team would have of course been West Ham - which shows that parachutes do allow a relegated side to keep a PL squad for the first season. With the extension to 4 years from 2, that period that WHU, Birmingham and Newcastle have used to their advantage will have increased.

As above its not clear when the increase from £48m to £60m might kick in, but we will still benefit in the subsequent 3 seasons even if it is not next year, unless we get promoted again! Hopefully we will be sensible with our cash (£8m for Jordan Rhodes?) and use it wisely to build a new title winning squad. With the troubles of the 5 teams above and QPR's already mammoth wages, we should be kicking ourselves if we dont!

Bolton are sitting in the play-offs now, by the way, but the other sides you have mentioned could be heading down still. Blackpool and Birmingham are only five points away from the relegation zone, while Wolves are in it and Blackburn just a point above it.

You have to remember, though, Blackpool and Birmingham were in the play-offs last season. Showing that they did have a go at it, before being forced to sell big money players.

I can see QPR going under, they made huge losses in the Premier League last season and they certainly won't improve this or next season. The parachute payments can't keep them a float. They will be forced to sell their big money players, to survive, and could be following Wolves and/or Blackburn down into League One, or even Portsmouth to League Two.

Should Blackburn go down, then Jordan Rhodes could be sold on a cut down price. Tom Ince is out of contract in the summer, too...