The reality of parachute payments

Jedi boro

Well-known member
It’s a term often bandied about on message boards and the like but I wonder if people realise just how much these do advantage the ex prem sides.

The EFL Chairman, Rick Parry, has been a long-time advocate of scrapping parachute payments. A recent survey carried out by Fair Game showed that Sheffield United, West Brom, Fulham and Bournemouth were given £39m last season in "solidarity" payments, compared to £4.8m for most of the other Championship clubs.
 

boroPE

Well-known member
It can soon go when your paying Premier league wages in the Championship. Look at Forest spent 100 million on 12 new signings, rumours now they are bidding another 20 million for Dennis from Watford. They would be right in it if they still go down. There again we didnt splash the cash and went down with barely a whimper. :(
 

Anton_Berg

Well-known member
Rick Parry and I'm agreeing with what he says!
Better to have prize money for promoted clubs replacing parachute payments.
 

junos_boots

Well-known member
Having money doesn't insulate you from making stupid decisions. Bad choice of manager, poor value signings etc.
We got the full amount for a couple of years but lost out on the last year due to the new rule affecting teams relegated in their 1st year in Premier league after promotion.

Sunderland got the extra year and it still didn't help them in 1st Div
 

Nano

Well-known member
They are there to protect teams from going bust holding big contracts. Would make more sense to change it so clubs can't just carry on as they are. A decent solution would be to enforce (significant) relegation pay-cuts. The parachute payments could subsidise the players that have had their pay cut but the subsidised payment would be by the league, not the club. Fixed amount per player rather than the amount of the pay-cut, i.e not paying PL wages in the Championship. If teams want to pay the player the full amount still they have to cover it out of championship revenue. Guarantee it for 1 season, half it the next and gone by the 3rd.

The surplus can be shared amongst the rest of the league.
 

Redwurzel

Well-known member
£35m is a massive gap in the Championship - it has also encouraged Championship clubs without the payments to overspend massively see Derby County.
 

Andy_W

Well-known member
It should get sacked off or the payment to a separate account, only to be used on wages of players purchased when in the premier league (not on anything else).

We could distribute the money better with lower clubs too, but then you would end up with a slightly lower standard in the top two leagues, albeit still very good.

Could also have contracts with forced wage reductions if dropping down leagues.
 

afcb_acklam

Well-known member
imagine a world where clubs had to have a certain number of players with some sort of "local" qualifying period requirement to play for a club, and the club had to be self-financing thru gates & self-generated income. never going to happen of course, but lovely to dream of.
 

Sheriff_John_Bunnell_ret

Well-known member
It should get sacked off or the payment to a separate account, only to be used on wages of players purchased when in the premier league (not on anything else).

We could distribute the money better with lower clubs too, but then you would end up with a slightly lower standard in the top two leagues, albeit still very good.

Could also have contracts with forced wage reductions if dropping down leagues.
Just don't give them anything. They can sell the players they can't afford. I think we even managed to turn a profit on the bunch of misfits we signed.
 

HundredRoom

Well-known member
They are there to protect teams from going bust holding big contracts. Would make more sense to change it so clubs can't just carry on as they are. A decent solution would be to enforce (significant) relegation pay-cuts. The parachute payments could subsidise the players that have had their pay cut but the subsidised payment would be by the league, not the club. Fixed amount per player rather than the amount of the pay-cut, i.e not paying PL wages in the Championship. If teams want to pay the player the full amount still they have to cover it out of championship revenue. Guarantee it for 1 season, half it the next and gone by the 3rd.

The surplus can be shared amongst the rest of the league.
They are giving big contracts because they have the parachute payments . Have you thought of it that way around ?
 
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