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Thread: Footy finance question

  1. #1
    First Team El Gwapo's Avatar
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    Footy finance question

    This may be a stupid question, I'm not sure.

    If you get relegated from the Premier you get parachute payments.

    Do you get a similar payment if relegated from Championship to 1st and so on down the pyramid or does that principle only extend to Prem relegation?

  2. #2

    Re: Footy finance question

    Quote Originally Posted by El Gwapo View Post
    This may be a stupid question, I'm not sure.

    If you get relegated from the Premier you get parachute payments.

    Do you get a similar payment if relegated from Championship to 1st and so on down the pyramid or does that principle only extend to Prem relegation?
    Decent enough question.
    I'm pretty sure it's just prem > champ.
    The way I understood it was the payments were brought in to help the relegated club manage their finances due to the fact that players were on such huge wages in the top flight.

    I could be wrong though.

  3. #3

    Re: Footy finance question

    How I think it works...
    Prem clubs that get rlegated get parachute payments for a number of years.
    If they do a Sunderland and drop into league one within those few years, payments continue.Clubs like Ipswich, who have not been in the prem recently (or ever) get no such payments.

  4. #4

    Re: Footy finance question

    Quote Originally Posted by bobh View Post
    How I think it works...
    Prem clubs that get rlegated get parachute payments for a number of years.
    If they do a Sunderland and drop into league one within those few years, payments continue.Clubs like Ipswich, who have not been in the prem recently (or ever) get no such payments.
    However, if a club goes straight back up then the parachute payments they would have received are distributed equally among the rest of the Championship clubs not currently receiving parachute payments.

  5. #5
    First Team El Gwapo's Avatar
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    Re: Footy finance question

    Quote Originally Posted by bobh View Post
    How I think it works...
    Prem clubs that get rlegated get parachute payments for a number of years.
    If they do a Sunderland and drop into league one within those few years, payments continue.Clubs like Ipswich, who have not been in the prem recently (or ever) get no such payments.
    In that scenario, would Ipswich would not get a Prem payment but would they get a Championship parachute payment for dropping into Div 1?

  6. #6

    Re: Footy finance question

    Quote Originally Posted by El Gwapo View Post
    In that scenario, would Ipswich would not get a Prem payment but would they get a Championship parachute payment for dropping into Div 1?


    if Ipswich dropped to League 1, there's no such payment.
    If a relegated prem team went back up,any of their unused parachute payments would be shared between Chsmp teams like Ipswich.
    And Cardiff... no. wait.

  7. #7

    Re: Footy finance question

    Quote Originally Posted by El Gwapo View Post
    In that scenario, would Ipswich would not get a Prem payment but would they get a Championship parachute payment for dropping into Div 1?
    The huge gulf between premiership and championship tv payments, does not exist between Championship and league 1.

    Whilst you receive £100m for finishing bottom of the premiership, you then get 2.084m tv money a £4.3 million solidarity payment, and £10,000 for each tv appearance in the championship.

    In league 1 that reduced to around £1.5m. Which is still a decrease, but nothing in terms of the difference between the championship and premiership.

    The parachute payments are there to cover this huge gap.

  8. #8

    Re: Footy finance question

    Quote Originally Posted by bobh View Post
    if Ipswich dropped to League 1, there's no such payment.
    If a relegated prem team went back up,any of their unused parachute payments would be shared between Chsmp teams like Ipswich.
    And Cardiff... no. wait.
    That used to be the case but I'm not sure it is any more. I seem to recall when the new deal was agreed with the Premier League a few years back, any unused parachute payments now go back to the Premier League.

  9. #9

    Re: Footy finance question

    Even if City get relegated, the parachute payments may make the club able to stay on the financial merry-go-round for a few years by making it possible to be promoted from the Championship again in the near future.

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