Question for those who understand the PL ££££££s (3 Viewers)

[Sky Blue Harry H]

Apparently if either Ipswich or Southampton go up, their 'parachute payments' that they wouldn't then get next season, are distributed to the PL teams. Does that mean we would get a few million more as a result? If so, I'm now less bothered if one (or both) of them come up. Although I actually think Southampton might be more dangerous than Ipswich for reasons unknown! DK will be happy though!!

Can anyone confirm that this is the case?

 

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[CraigSBA]

Apparently if either Ipswich or Southampton go up, their 'parachute payments' that they wouldn't then get next season, are distributed to the PL teams. Does that mean we would get a few million more as a result? If so, I'm now less bothered if one (or both) of them come up. Although I actually think Southampton might be more dangerous than Ipswich for reasons unknown! DK will be happy though!!

Can anyone confirm that this is the case?

Good question , AI answer suggest distribution amongst the other PL clubs

 

[JSL]

Plus what happens to Leicester's if and when they go down again? They lose their parachute payment right? and where do they then go?

 

[Terry_dactyl]

Plus what happens to Leicester's if and when they go down again? They lose their parachute payment right? and where do they then go?

Do they lose their parachute payment? I’m sure someone asked the same about Luton last year and it was said that they continue to receive them?

 

[Mercian In Anglia]

Plus what happens to Leicester's if and when they go down again? They lose their parachute payment right? and where do they then go?

Think this was discussed when Luton went. IIRC they still keep it.

I say keep it, they give it to the bank they are still repaying having borrowed it all to pay Oliver Skipp's wages.

 

[Mercian In Anglia]

Info here, looks like they also get a small EFL parachute payment too:

Premier League parachute and solidarity payments - Wikipedia

en.wikipedia.org

 

[Sky Blue Harry H]

Do they lose their parachute payment? I’m sure someone asked the same about Luton last year and it was said that they continue to receive them?

Difference between being relegated further, and a club being promoted back to the PL. Otherwise the promoted (parachute) club get an effective double payment. I've definitely read (in the last week or so) that the money set aside to pay them (had they not been promoted) is redistributed to the PL teams (one of which would now be us !)

 

[Balli001]

If a club is promoted back to the Premier League immediately (or within the three-year parachute payment period), all future parachute payments cease immediately.
Wikipedia +1
Here is the breakdown of what happens:

• Payments Stop: The club forfeits any remaining years of parachute payments (45% in year two and 20% in year three) because they will again receive a full share of Premier League broadcasting revenue.
• No "Instant" Payment: Because parachute payments are typically paid in installments that align with the Championship season, a club that spends only one season in the EFL often does not receive a "first-year" payment.
• Where the Money Goes: The unused parachute payments are not distributed to other EFL clubs. Instead, the money remains in the pot which the remaining Premier League clubs share between themselves.
• Exceptions: If a club was in the Premier League for only one season before being relegated, they are only eligible for two years of payments (55% and 45%) rather than three (55%, 45%, and 20%), which would also stop upon promotion.
  Reddit +6

 

[shmmeee]

As I understand it clubs in the PL get an equal share of the total cash, parachute clubs get a percentage of a share but the total pot doesn’t change so yeah we’d get slightly more as fewer clubs to split between.

 

[Sky Blue Harry H]

As I understand it clubs in the PL get an equal share of the total cash, parachute clubs get a percentage of a share but the total pot doesn’t change so yeah we’d get slightly more as fewer clubs to split between.

Hadn't realised that if we only stay in EPL for one season that parachute payments only last for 2 seasons. That explains why Sheffield Utd will be under such financial pressure next season.

 

[skybluecam]

Plus what happens to Leicester's if and when they go down again? They lose their parachute payment right? and where do they then go?

I don't get where this myth has come from, parachute clubs don't lose the payment. That wouldn't make any sense.

 

[JAM See]

I don't get where this myth has come from, parachute clubs don't lose the payment. That wouldn't make any sense.

To reinforce this point...the premier league doesn't give a fuck what league you're in.

If you are not in the premier league, you receive any due payments.

 

[wingy]

Thought it was a new rule starting next year?
Hope I'm wrong.