do parachute payments still exist ?

[doubledecker]

There is no guarantee that new signings will keep us up. We are already facing huge losses if most of our squad have to be sold off cut price if we go down. There used to be parachute payments for clubs going down which meant that clubs going down would be ok for at least 1 year if they go down and bounce back. Do these still exist and how much are they ?

We have spent around 30m in the window and this may go up to 50m tomorrow This combined with our new stadium plans (which I am guessing would be shelved ) means that we are at first sight taking huge risks .

Sorry if these are depressing questions but it is no use hiding in false optimism.

 

[Russell]

I understand the parachute payment works out at around £30M over two years.

 

[Dartford_Spur]

yes i think its something like 25m over 2 years. we would most likely gain about 60m-80m in transfer fees if we went down though, and would have to rebuild the squad from scratch almost.

 

[ckafetz]

The Premier League distributes a small portion of its television revenue to clubs that are relegated from the league in the form of "parachute payments". Starting with the 2006-07 season, these payments are in the amount of £6.5 million over the club's first two seasons in lower leagues.[2] Though designed to help teams adjust to the loss of television revenues (the average Premier League team receives £45 million while the average Football League Championship club recevies £1 million[2]),

 

[ckafetz]

Looking at the above which I posted , it suggests we need to spend big to stay up as going down will cripple us financially

 

[Russell]

It works out at considerably more than £6.5M a year, but I completely agree that however much the parachute payments are, we can't afford to go down. There's no guarantee of going back up or even doing well in the Championship (look at Charlton) and having to sell off our best players would be absolutely gutting - though we are quite good at selling our best players anyway.

 

[milkman]

Yes it does.

We won't be needing one though.

 

[camaj]

Sorry if these are depressing questions but it is no use hiding in false optimism.

I agree, but there is not false optimism. We're in a good position. We've got more chance of qualifying for europe that getting relegated. Some people are so paranoid that they'll let rationality leave them.

We won't need parachute payments anyway, unless our attendances drop. If the supporters are loyal we'll be back no worries.