Parachute payments

[john jako]

Good ebening Jim.

Can anyone explain how parachute payments work when you are relegated? How much does it help compared to premier league money(TV rights etc)?

 

[Nymzee]

Getting relegated and securing parachute payments to try and pay off our debts. Genius move, Farhad.

 

[Del-boy]

Good ebening Jim.

Can anyone explain how parachute payments work when you are relegated? How much does it help compared to premier league money(TV rights etc)?

Think it lasts three seasons. Each payment reducing significantly each year.
Even with the parachute payments we will lose around £75 million from broadcasting revenue.

Given our financial situation, we will need to probably sell double this to balance the books given our loses.

 

[Rita_Poon]

 

[Look to the future]

Just a way of softening the blow after the massive drop in income.

 

[Azza]

Good ebening Jim.

Can anyone explain how parachute payments work when you are relegated? How much does it help compared to premier league money(TV rights etc)?

It's 55% of TV money in the first year so about £45m.

 

[john jako]

Think it lasts three seasons. Each payment reducing significantly each year.
Even with the parachute payments we will lose around £75 million from broadcasting revenue.

Given our financial situation, we will need to probably sell double this to balance the books given our loses.

What happens if nobody takes Iwobi off us for even a million and he’s on 100k a week? Surely this is going to happen with a lot of players

 

[SJB]

Everton warned they may face 'biggest financial jeopardy in world football'

Crystal Palace chairman has described relegation as the "biggest financial jeopardy in world football" at new clubs meeting

www.google.com

An article on it where Steve Parish explains it pretty succinctly.

 

[Lloydaldo11]

Straight

Good ebening Jim.

Can anyone explain how parachute payments work when you are relegated? How much does it help compared to premier league money(TV rights etc)?

Straight into Usmanov burner account alongside the Richy and Gordon money

 

[Del-boy]

What happens if nobody takes Iwobi off us for even a million and he’s on 100k a week? Surely this is going to happen with a lot of players

That’s the issue, we have no relegation release/wage drop clauses. I think he will get a club abroad but for a vastly reduced fee to what we paid. Most likely £10-15 million. Or he stays and we end up with a Rodwell situation at Sunderland who was on 70k in League one as he wouldn’t leave.

Iwobi is the least of our worries though. We have so much garbage on high wages we will struggle to shift.

 

[MIKE85]

What happens if nobody takes Iwobi off us for even a million and he’s on 100k a week? Surely this is going to happen with a lot of players

Then we'll have a few Jack Rodwells in our hand.

 

[coleman=quality]

What happens if nobody takes Iwobi off us for even a million and he’s on 100k a week? Surely this is going to happen with a lot of players

It’s likely to happen with a few players and could be costly to us

 

[john jako]

so what I’ve gathered from the thread is these parachute payments will keep us afloat until the first round of the league cup

 

[4737carlin]

They get dropped from a hot air balloon into a Russian bank account

 

[wainy]

It’s in the accounts. The club will have money for 12 months, then that’s it.