My predictions for the new season

[dml1954]

Firstly, surely the majority of the parachute payments are paid towards the end of each subsequent season after relegation. That means that the second yearly payment that we are due (over £30m) is around now and this money will be available to carry us through into next season. Therefore our next years budget will not be as dire as people are predicting. Secondly, why would anyone in their right mind be as pessimistic as the OP. From what has been said there is no indication that players like Moore or Morrison want to or will be sold. There is also no indication that Tan is going to stop funding the club or transfers altogether either. Budgets will be lower all around the leagues and the fact that we have some good young players coming through will obviously help. Players will leave but only if deemed surplus to requirements and if Moore is sold then I am confident that the money will be used to bring in replacements. PS. The negativity and pessimism on this board is truly staggering at times.

[Rjk]

Firstly, surely the majority of the parachute payments are paid towards the end of each subsequent season after relegation. That means that the second yearly payment that we are due (over £30m) is around now and this money will be available to carry us through into next season. Therefore our next years budget will not be as dire as people are predicting. Secondly, why would anyone in their right mind be as pessimistic as the OP. From what has been said there is no indication that players like Moore or Morrison want to or will be sold. There is also no indication that Tan is going to stop funding the club or transfers altogether either. Budgets will be lower all around the leagues and the fact that we have some good young players coming through will obviously help. Players will leave but only if deemed surplus to requirements and if Moore is sold then I am confident that the money will be used to bring in replacements. PS. The negativity and pessimism on this board is truly staggering at times.

Why would you assume that the parachute payments are paid at the end of the year?
I've never seen anything to suggest that was the case.
In any case we will receive about 35 million less next season than we will this season, so we will need to budget accordingly.

[dml1954]

Why would you assume that the parachute payments are paid at the end of the year?
I've never seen anything to suggest that was the case.
In any case we will receive about 35 million less next season than we will this season, so we will need to budget accordingly.

At the end of the season we were relegated from the Premier League, we would still have been in receipt of that seasons TV and rights money which was not finally calculated until the League finished and our position was known. The parachute payments were for the following two seasons, the second one of which has just ended. Therefore it is entirely likely that the parachute payments are made at the end of each year. Also the parachute payments are 55% for the first year and 45% for the second, so actually drop by about £6m, not £35m. TV money to all clubs is mainly paid out at the season end, with possibly interim payments around the New Year.

[jon1959]

At the end of the season we were relegated from the Premier League, we would still have been in receipt of that seasons TV and rights money which was not finally calculated until the League finished and our position was known. The parachute payments were for the following two seasons, the second one of which has just ended. Therefore it is entirely likely that the parachute payments are made at the end of each year. Also the parachute payments are 55% for the first year and 45% for the second, so actually drop by about £6m, not £35m. TV money to all clubs is mainly paid out at the season end, with possibly interim payments around the New Year.

Broadcasting rights money to EPL clubs is not held back until the end of the season when the final apportionment (based on live TV coverage decisions) is known - is it?

I thought it was paid in instalments? With both parachute and solidarity payments to EFL clubs paid in a similar way. The intention is to cushion the financial impact of relegation and that hits from the start of the season, not the end.

In May last year the EPL clubs were in the middle of a massive argument with Sky and BT about refunding a % of the TV money already paid out by the broadcasters - and my impression was that they didn't send the EPL/clubs a cheque at the end of the season and then ask for some of it back a week later.

Football was suspended in early March 2020, and by then the EPL clubs already had a major part of the broadcasting money! Surely the same applies to knock-on payments further down the football pyramid?

[Punxsutawney Phil]

At the end of the season we were relegated from the Premier League, we would still have been in receipt of that seasons TV and rights money which was not finally calculated until the League finished and our position was known. The parachute payments were for the following two seasons, the second one of which has just ended. Therefore it is entirely likely that the parachute payments are made at the end of each year. Also the parachute payments are 55% for the first year and 45% for the second, so actually drop by about £6m, not £35m. TV money to all clubs is mainly paid out at the season end, with possibly interim payments around the New Year.

Pretty sure payments are staggered throughout the season, this would mean that you're correct in that there may be some left to pay for this year. However, this would no doubt be catered for in this years budget so will have no bearing on next year when the income from the Premier League will drop from £35m to the £4.5m solidarity payment.

Given our wage bill has been reported as around £22m it's likely that it's going to need more than just losing our out of contract players to keep us going. Does anyone know the max amount an owner is allowed to put into a club per year under FFP?

[Rjk]

Pretty sure payments are staggered throughout the season, this would mean that you're correct in that there may be some left to pay for this year. However, this would no doubt be catered for in this years budget so will have no bearing on next year when the income from the Premier League will drop from £35m to the £4.5m solidarity payment.

Given our wage bill has been reported as around £22m it's likely that it's going to need more than just losing our out of contract players to keep us going. Does anyone know the max amount an owner is allowed to put into a club per year under FFP?

isn't it 80million over a 3 year period

[Punxsutawney Phil]

Just lifted the following from Wikipedia https://en.wikipedia.org/wiki/Premie...0the%20Premier

Parachute payments are unique to the English game and currently see clubs relegated from the Premier League receive a percentage of the equally shared element of broadcasting rights each Premier League club receives. This percentage drops progressively over a three year period – 55% in the first year, 45% in year two and, if the club was in the Premier League for more than one season before relegation, 20% in the third year.

Same article says we'd have had £41.6m last year, £34.9 this so £80m is close but we get nothing next year as we were only in the league for season.

[Punxsutawney Phil]

isn't it 80million over a 3 year period

Just realised you probably mean how much can be invested!

[tomcat]

Firstly, surely the majority of the parachute payments are paid towards the end of each subsequent season after relegation. That means that the second yearly payment that we are due (over £30m) is around now and this money will be available to carry us through into next season. Therefore our next years budget will not be as dire as people are predicting. Secondly, why would anyone in their right mind be as pessimistic as the OP. From what has been said there is no indication that players like Moore or Morrison want to or will be sold. There is also no indication that Tan is going to stop funding the club or transfers altogether either. Budgets will be lower all around the leagues and the fact that we have some good young players coming through will obviously help. Players will leave but only if deemed surplus to requirements and if Moore is sold then I am confident that the money will be used to bring in replacements. PS. The negativity and pessimism on this board is truly staggering at times.

Feel free to bookmark my comments, Tan paid a whack of money into the club last month and doesn't want to continue to bankroll City. Morrison is on a very high wage and we could get a fee for a player who's value will lessen in the next few years due to his age. Nelson was a good buy, no reason why we couldn't get a decent replacement in cheaply. Moore would be a big loss but I wouldn't want to stand in his way if he fancied playing at a higher level on a higher wage.

[dml1954]

Feel free to bookmark my comments, Tan paid a whack of money into the club last month and doesn't want to continue to bankroll City. Morrison is on a very high wage and we could get a fee for a player who's value will lessen in the next few years due to his age. Nelson was a good buy, no reason why we couldn't get a decent replacement in cheaply. Moore would be a big loss but I wouldn't want to stand in his way if he fancied playing at a higher level on a higher wage.

So basically, sell most of the first team, put all the youngsters in and accept the inevitable fate of ending up in League One (or two after). Excellent business sense, ending up with a club worth bog all instead of the £150m plus he has put in ! Tan has been putting a ‘whack of money’ in ever since he took over and there is absolutely no evidence that he is not going to continue to back the club now. He has recently taken on an experienced manager on a presumably high salary and stated his desire to get back into the Premier League sooner rather than later.