How does the parachute payment works

[Clyde1998]

See below

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

Quite clearly states we would get it

OK. The BBC did say that it would start new season, though. Maybe they were saying that the payments would start next season.

[Extended-Phenotype]

Currently clubs that drop down to the
Championship receive £48m over four years,
however now they are set to receive in excess of
£60m over a four-year period from next season.

As it stands, Reading, QPR and Wigan will be the
beneficiaries of the new payment scheme.


Ace, that means we might sign Greg Duffer from Ferndown FC AND Phil McBillaby from Clover Town!

[SPARTA]

Currently clubs that drop down to the
Championship receive £48m over four years,
however now they are set to receive in excess of
£60m over a four-year period from next season.

As it stands, Reading, QPR and Wigan will be the
beneficiaries of the new payment scheme.


Ace, that means we might sign Greg Duffer from Ferndown FC AND Phil McBillaby from Clover Town!

How so? The new deal starts at the beginning of the 2013/14 season, so will surely include next seasons PL clubs?

For example, the current TV deal - we haven't received a penny yet. We get this years money at the end of this season, so we will receive our first parachute payment at the end of next season, and so on.

[Clyde1998]

Currently clubs that drop down to the
Championship receive £48m over four years,
however now they are set to receive in excess of
£60m over a four-year period from next season.

As it stands, Reading, QPR and Wigan will be the
beneficiaries of the new payment scheme.


Ace, that means we might sign Greg Duffer from Ferndown FC AND Phil McBillaby from Clover Town!

How so? The new deal starts at the beginning of the 2013/14 season, so will surely include next seasons PL clubs?

For example, the current TV deal - we haven't received a penny yet. We get this years money at the end of this season, so we will receive our first parachute payment at the end of next season, and so on.

I don't think it's all up front. I think we get around half of the seasonal amount at the start of next season, and then the rest of it is paid monthly.

[Divvy]

Currently clubs that drop down to the
Championship receive £48m over four years,
however now they are set to receive in excess of
£60m over a four-year period from next season.

As it stands, Reading, QPR and Wigan will be the
beneficiaries of the new payment scheme.


Ace, that means we might sign Greg Duffer from Ferndown FC AND Phil McBillaby from Clover Town!

How so? The new deal starts at the beginning of the 2013/14 season, so will surely include next seasons PL clubs?

For example, the current TV deal - we haven't received a penny yet. We get this years money at the end of this season, so we will receive our first parachute payment at the end of next season, and so on.

^ this!

We don't qualify for the new deal. The express haven't got a clue.

[Ian Royal]

Yeah, I'm sure all this was talked about at the beginning of the season, that we really needed to stay up this year, because we'd miss out on a big increase in parachute payments if we went straight away.

[St. Brynjar]

So we've gone up and got £90 million, and we're getting relegated and getting £60 million? Not bad considering we've barely spent a penny since promotion.

[Divvy]

So we've gone up and got £90 million, and we're getting relegated and getting £60 million? Not bad considering we've barely spent a penny since promotion.

It isn't £90m, and the Sky money is for one season, whereas the parachute payments are spread over four years:

2013/14 - £16m
2014/15 - £16m
2015/16 - £8m
2016/17 - £8m

The new deal which means £60m in parachute payments comes into affect next season, yes, but will affect the Premier League clubs who get relegated next season, not us this season.

2014/15 - £18m (?)
2015/16 - £18m (?)
2016/17 - £12m (?)
2017/18 - £12m (?)

The Express have got the wrong end of the stick, which isn't a great surprise.

[winchester_royal]

It's not just the Express though is it? BBC are running with us being the first beneficiaries of the scheme, as well as the telegraph.

The PL receives the new TV money from next season, therefore they will pay out the new parachute money/prize money/tv bonuses from next season.

http://www.telegraph.co.uk/sport/football/competitions/premier-league/9998358/Premier-Leagues-relegated-clubs-will-receive-parachute-payment-amount-of-60m-over-four-years.html

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

[NR_Royal]

So we've gone up and got £90 million, and we're getting relegated and getting £60 million? Not bad considering we've barely spent a penny since promotion.

The £90m includes parachute payments. HTH.

[JC]

So we've gone up and got £90 million, and we're getting relegated and getting £60 million? Not bad considering we've barely spent a penny since promotion.

It isn't £90m, and the Sky money is for one season, whereas the parachute payments are spread over four years:

2013/14 - £16m
2014/15 - £16m
2015/16 - £8m
2016/17 - £8m

The new deal which means £60m in parachute payments comes into affect next season, yes, but will affect the Premier League clubs who get relegated next season, not us this season.

2014/15 - £18m (?)
2015/16 - £18m (?)
2016/17 - £12m (?)
2017/18 - £12m (?)

The Express have got the wrong end of the stick, which isn't a great surprise.

So the Express (and now the Telegraph) have got it wrong. Where is your evidence that they are wrong?

[SPARTA]

Wouldn't it be bizzare if we suddenly qualify for this bumper TV deal when 9 months ago all we heard in the media was how it was vital for all the PL clubs to stay up and qualify for the new deal? Now this seasons clubs get the new amount anyway, and we get the new parachute money as well?

[winchester_royal]

Wouldn't it be bizzare if we suddenly qualify for this bumper TV deal when 9 months ago all we heard in the media was how it was vital for all the PL clubs to stay up and qualify for the new deal? Now this seasons clubs get the new amount anyway, and we get the new parachute money as well?

It's 'vital' to stay up because being in the PL next season is worth £100m. £60m across 4 years seems pretty trivial in comparison to that.

[Simon's Church]

Dunno.

Think this is the best answer you're gonna get tbh Reading West.

[Jay o/]

Interestingly a football finance exec also agrees we shouldn't be getting the new deal, but says it could be that the new deal was struck bringing forward by 12 months the clubs who would qualify; i.e. us, QPR and A.Nother.

[Divvy]

So we've gone up and got £90 million, and we're getting relegated and getting £60 million? Not bad considering we've barely spent a penny since promotion.

It isn't £90m, and the Sky money is for one season, whereas the parachute payments are spread over four years:

2013/14 - £16m
2014/15 - £16m
2015/16 - £8m
2016/17 - £8m

The new deal which means £60m in parachute payments comes into affect next season, yes, but will affect the Premier League clubs who get relegated next season, not us this season.

2014/15 - £18m (?)
2015/16 - £18m (?)
2016/17 - £12m (?)
2017/18 - £12m (?)

The Express have got the wrong end of the stick, which isn't a great surprise.

So the Express (and now the Telegraph) have got it wrong. Where is your evidence that they are wrong?

This article contradicts itself.

http://www.telegraph.co.uk/sport/footba ... years.html

The first paragraph spells it out - from NEXT season.

The Premier League clubs that are relegated NEXT season will get the new parachute payments.

[Alexander Litvinenko]

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.

It used to be like that, but when the PL changed the rules on Solidarity Payments in summer 2011 (I think!) they scrapped the system where they used to share out any un-used parachute payments amongst the Championship clubs not getting them.

Now, all Championship clubs not getting them get a flat rate £1M from if the PL - and any unused ones stay in the PL's coffers. They also get subsidies on youth development costs under EPPP.

[JC]

So the Express (and now the Telegraph) have got it wrong. Where is your evidence that they are wrong?

This article contradicts itself.

http://www.telegraph.co.uk/sport/footba ... years.html

The first paragraph spells it out - from NEXT season.

The Premier League clubs that are relegated NEXT season will get the new parachute payments.

So you are saying that it is your interpretation that "from next season" means starting with the payments in the following season. Could it actually mean what the Express and Telegraph are saying, ie beginning with the payments next season. Have you seen a definitive explanation?

[Jay o/]

the footy finance 'experts' are backing what he's saying to be fair. it's only the papers that seem to be saying otherwise. it'll all become clear when it's been agreed soon.

[Stuka]

It's not all that clear this football finance business is it.