End Parachute Money

[Philmycock]

3 hours ago, B4ev6is said:

Me and my dad are going to fulham lads need our help no point moaning about ticket prices.

What's that got to do with this parachute payments thread? ?‍♂️ 

[jono]

6 minutes ago, Unlucky Alf said:

Look no further than this...gob smacking!

https://www.football365.com/news/man-utd-under-the-glazers-the-ridiculously-frightening-numbers

As a United follower now and a fan / ST holder as a youth it breaks my heart. They stank to high heaven from the moment they arrived. The club is still there but the means, morals and motives disgust me. Everything they have done is on borrowed money secured against the club .. which before they arrived was profitable, trophy winning and debt free. 

[Ram-Alf]

9 minutes ago, Philmycock said:

What's that got to do with this parachute payments thread? ?‍♂️ 

They both won the raffle, Ist prize was a Parachute jump of their choosing, So they're jumping with gate money in hand to Craven Cottage

[The Key Club King]

26 minutes ago, Curtains said:

Are you joking.

No. I've stated that clubs receiving parachute payments are no more likely to get promoted than clubs further down the league pyramid who don't get them. It's not got significantly more difficult for any club to get promoted to the top division since parachute payments were introduced. 

It makes sense to think there is a problem with the additional money clubs receive, but the facts do not bear this out. 

[Curtains]

19 minutes ago, The Key Club King said:

No. I've stated that clubs receiving parachute payments are no more likely to get promoted than clubs further down the league pyramid who don't get them. It's not got significantly more difficult for any club to get promoted to the top division since parachute payments were introduced. 

It makes sense to think there is a problem with the additional money clubs receive, but the facts do not bear this out. 

It’s not always about a return first time around as they have 3 years at it. 
 

https://www.inbrief.co.uk/football-law/premier-league-parachute-payment/

Edited November 13, 2021 by Curtains
Added

[The Key Club King]

6 minutes ago, Curtains said:

It’s not always about a return first time around as they have 3 years at it. 
 

https://www.inbrief.co.uk/football-law/premier-league-parachute-payment/

Absolutely it's not all about an immediate return and the benefit of this money should last to 3 years. But there is little if any difference between PL/Championship and Championship/L1 despite the parachute payments. 

I think there are maybe only 9 Championship clubs who haven't been in the PL in the past 10-15 years. Unfortunately we are one of them.

Staying in the PL is far harder than staying in the other divisions. I see the parachute payments as more of an incentive to increase your wage bill once promoted safe in the knowledge that the parachute payments are there as a safety net. Without increased spending after promotion it would be incredibly difficult to bridge the gap and stay there. 

[Sparkle]

5 hours ago, The Key Club King said:

It doesn't seem fair, you're right. Given this massive advantage, why don't all teams that are relegated from the PL get promoted straight away? 

 

5 hours ago, The Key Club King said:

It doesn't seem fair, you're right. Given this massive advantage, why don't all teams that are relegated from the PL get promoted straight away? 

Most do within two seasons 

[Curtains]

9 minutes ago, The Key Club King said:

Absolutely it's not all about an immediate return and the benefit of this money should last to 3 years. But there is little if any difference between PL/Championship and Championship/L1 despite the parachute payments. 

I think there are maybe only 9 Championship clubs who haven't been in the PL in the past 10-15 years. Unfortunately we are one of them.

Staying in the PL is far harder than staying in the other divisions. I see the parachute payments as more of an incentive to increase your wage bill once promoted safe in the knowledge that the parachute payments are there as a safety net. Without increased spending after promotion it would be incredibly difficult to bridge the gap and stay there. 

I think you will find one of Mels mainbones of contention was parachute payments and I agree with him. 
 

He also didn’t agree with the TV money split across the Leagues which upset the EFL .

FFP is a joke as is getting annoyed about Derby’s amortisation policy and ground sale .

Its almost incomprehensible  

 

 

[kevinhectoring]

3 hours ago, jono said:

I’d be interested to see how many none parachute clubs have been promoted in the last 5 years ? Anyone got any names ? Leeds .. who else ? 
 

The race is usually between parachute clubs (recently relegated or still in receipt from past seasons ) and maybe 1 or 2 others .. if you could introduce a financing system that was less loaded then it would be a far healthier competition.. suddenly you might get 6/8 clubs in the race rather than 3/4. And reaching the marker for a cash injection is an incentive to others but not one that would force madness in spending. A worthwhile prize for a finish above top 10 

There’s a load of data now why don’t they calculate the average distance between [7th] place and the parachute corps. If it’s 9 points, make them all start on -9

[Sparkle]

1 hour ago, Macintosh said:

My argument is that the only way this will ever change is through fan power, media and journalists. That's why the European Super League collapsed. Another gripe is that QPRs punishment of £41m, well that ended up getting paid by Parachute Money, so they suffered absolutely nothing and only the Rams did. And where did that money go, same with the fines to Bournemouth and Leicester? Certainly not distributed to the clubs.

 

2020/21

Norwich City, Watford

Swansea and Bournemouth in Play-offs

 

2019/20

West Brom

Fulham, Cardiff and Swansea in Play-offs

 

2018/19

Norwich City

West Brom and Aston Villa in Play-offs

 

2017/18

Cardiff

Fulham, Aston Villa, Middlesbrough in Play-offs

 

2016/17

Newcastle

Reading and Fulham in Play-offs

 

2015/16

Burnley

Hull City in Play-offs

I think QPR end up paying £17 million over ten years 

[The Key Club King]

20 minutes ago, Sparkle said:

 

Most do within two seasons 

I make it 5 of the last 15 relegated PL clubs got promoted within two years. 

[Curtains]

3 minutes ago, The Key Club King said:

I make it 5 of the last 15 relegated PL clubs got promoted within two years. 

How many got relegated to Div 1 

Edited November 13, 2021 by Curtains
Added

[jono]

1 hour ago, The Key Club King said:

No. I've stated that clubs receiving parachute payments are no more likely to get promoted than clubs further down the league pyramid who don't get them. It's not got significantly more difficult for any club to get promoted to the top division since parachute payments were introduced. 

It makes sense to think there is a problem with the additional money clubs receive, but the facts do not bear this out. 

That rather goes against the stats you gave earlier. 50% of promotion slots taken by 8 parachute clubs. And as those 8 are likely to be largely the same year on year, then the facts do bear it out.

[The Key Club King]

19 minutes ago, Curtains said:

I think you will find one of Mels mainbones of contention was parachute payments and I agree with him. 
 

He also didn’t agree with the TV money split across the Leagues which upset the EFL .

FFP is a joke as is getting annoyed about Derby’s amortisation policy and ground sale .

Its almost incomprehensible  

 

 

I can't defend the EFLs actions, or Mel's for that matter. Both will be correct on some things at some point. Mel wanted to do to L1&2 what the PL did to the whole EFL and keep the TV money to themselves. The EFL are against parachute payments I think but they don't pay them. 

[Curtains]

1 minute ago, The Key Club King said:

I can't defend the EFLs actions, or Mel's for that matter. Both will be correct on some things at some point. Mel wanted to do to L1&2 what the PL did to the whole EFL and keep the TV money to themselves. The EFL are against parachute payments I think but they don't pay them. 

I’d have to let Mel speak for himself on that .

I was under the impression Mel wanted a fairer system as a whole for all clubs .

 

 

[May Contain Nuts]

Keep the payments, but in season one the relegated teams start on -15, if they stay down a second season they start on -10, in the 3rd season they start on -5

Removes some of the ridiculous advantage given while allowing them plenty of time to sort their wages out. 

Something along those lines, I haven't checked how many points the teams who end up going straight back up usually have to spare tbh, so that could be -12, -6, -3  or -20, -15, -10 but you get the idea.

I think I've cracked it tbh, can't see any downsides!?

Edited November 13, 2021 by Coconut's Beard

[GenBr]

6 hours ago, The Key Club King said:

Parachute payments are an easy scapegoat for a problem that barely exists. In the last 8 years (from Mac1 period) an average of one relegated Premier League club has been immediately promoted the following season. It feels like it is more because last year it was 2 and this year may well be two, but that is far too early for this to be a trend. 

Theoretically, parachute payments mean higher wage bills and therefore much higher chance of promotion. The reality is that the toxic atmosphere created by relegation seemingly wipes this advantage out. 

Parachute payments last for 3 years - not just one. The last 3 seasons have seen at least 2 parachute teams get promoted and this year will almost certainly be the same.

20-21 - watford and norwich

19-20 fulham and west brom

18-19 villa and norwich

We've also lost our last 4 playoff campaigns to parachute teams as far as i can see.

Parachute payments and their higher allowable losses create a huge advantage for these teams. 

[WestKentRam]

10 hours ago, Coconut's Beard said:

Keep the payments, but in season one the relegated teams start on -15, if they stay down a second season they start on -10, in the 3rd season they start on -5

Removes some of the ridiculous advantage given while allowing them plenty of time to sort their wages out. 

Something along those lines, I haven't checked how many points the teams who end up going straight back up usually have to spare tbh, so that could be -12, -6, -3  or -20, -15, -10 but you get the idea.

I think I've cracked it tbh, can't see any downsides!?

Great idea! Relegated clubs can't moan they can't afford their expensive previous PL players while they see out their contracts, and it levels the playing field. Far too fair and sensible for the EFL to adopt though.

[Ghost of Clough]

19 hours ago, Macintosh said:

I don't think anyone would argue if these teams were given a helping hand, maybe the difference between the highest wages paid by a team in the Championship and what they are going to have to pay. But a team like Norwich, their wage bill was one of the lowest after relegation, smaller than ours, they also sold two players for a lot of dosh. The £42.6m parachute payment totally covered all of Watford's wages and double what Bournemouth required, it was triple Norwich wages cost. It would be fair if Norwich and Bournemouth were given nothing, and Watford around £20m, a sliding scale of what is needed, and paid at the end of the season. The rest of the £365m divided equally to all teams in the Championship, around £15m each, then you have a competitive league at last.

The £34.9m second payment again covers all of Bournemouth's wages for this season with £15m to be added to the £25m they didn't need the previous season.

Callum Wilson sold by Bournemouth to Newcastle for £20m, Aaron Ramsdale to Sheffield United for £18m. Nathan Aké for £40m. Not sure how much for Harry Arter, Josh King and Dan Gosling. Total £78m

Jamal Lewis to Newcastle £15m, Ben Godfrey to Everton £20m. Total £35m

Pervis Estupiñán to Villarreal £15m, Abdoulaye Doucouré to Everton £20m, Luis Suárez to Granada £10m, Gerard Deulofeu for £17m, a few other deals difficult to work out because they were to parent clubs in Spain. Total £62m

 

 

Where are you getting your figures from? Norwich's wage bill in 18/19 (3rd season in Championship) was £54m. I'd be very surprised if it was as low as you're suggesting, 2 year later and after a season in the PL.

[Oldben]

In the early days parachute payments,  Championship clubs received a flat free of £2.3m each per season over 4 years.

From the 2016/17 season, the payment system was changed so that the money will be distributed to relegated clubs over three years rather than four. Relegated clubs will receive 55 per cent of the equal share of broadcast revenue paid to Premier League clubs in the first year after relegation, 45 per cent the following year and 20 per cent in year three.

April 2021 reported: It seems ages since Stoke City got relegated at the end of 2017-18 season, but they’re still trousering an £18million parachute payment this season.

The immediate promotion of Norwich City and Watford back into the Premier League means that all 20 Premier League clubs will receive a slice of an £83M financial boost. After last year's relegation, all three relegated clubs were paid a total of £83M, referred to as 'parachute payments' by the Premier League clubs. So, what are parachute payments' And why were relegated clubs given this financial boost'.

While it can be said that this seems unfair the counter argument is that potential Derby buyers will look forward to a share of such profits as an incentive if they can promote the club to the Premier league at some point but are then faced with potential immediate relegation. 

Its expensive to promote a club to the Premier league.

Independent newspaper, may 2021: how much is winning the Championship play-off final worth?

Ahead of last year’s Championship play-off final, Deloitte reported that the victorious club could earn anywhere between £135million and £265m, depending on whether or not they could avoid immediate relegation from the Premier League.

This can act as another incentive for any potential Derby buyer.