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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?
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.
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.
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.