Promotion To Premier League Now Worth £88m

[jonny72]

Due to more money coming in from overseas, from next season Premier League clubs will get a minimum of £40m a season solely from TV rights. Additionally, they are planning to increase the parachute payments to £48m over four seasons (currently £22m over two seasons). Meaning one season in the Premier League being worth £88m, in addition to all the other extra income that is generated (advertising, sponsorship, tickets etc), which is a shit load of cash.

The Premier League are also looking in to increasing the solidarity payments to the Football League to £100m a season from the current £21m. Not sure what this includes though, its possible it includes the parachute payments though they normally talk about the two separately.

Whilst I'm all in favour of more money filtering down the leagues, those parachute payments are worrying. If the clubs used them to transition to life in the Championship then fine, but that isn't what happens or will happen - the clubs will piss it away trying to get promoted again. If it all goes wrong they'll be in an even bigger financial mess.

Maybe they need to add some conditions to the parachute payments to stop clubs pissing it up the wall?

[SwindonTartanArmy]

Maybe they need to add some conditions to the parachute payments to stop clubs pissing it up the wall?

Fuck them. if the end up going bust by chasing after the pot of gold at the end of the rainbow then they deserve all they get.

[Barry Scott]

Fuck them. if the end up going bust by chasing after the pot of gold at the end of the rainbow then they deserve all they get.

Definitely, if they wanna be twats, let them. Although more concerning is not the fact that they'll use it this way, but the fact it's clearly leaning towards Gartside's cuntface comments. It will almost relegation-proof the premiership, which, without meaning to sound like a socialist, means i want them to go suffer more, because they'll have more than us!

[Colin Todd]

Its mental.

I can see clubs managing to get up then not really trying too hard to stay up beacuse the money earnt can pay off the clubs debts.  Why bother gambling £30m on new players when you are guaranteed this sort of income regardless of performance. Then when you go back down you have a head start financailly on 3/4's of the championship.

To be honest my biggest problem isnt the ammount of money, it is the gap between the championship and premier league. It will cause clubs to gamble because the prize is so big.

What is STFC's annual turnover?  £3.5 - £4m? 

It cant be good for football that our total income would be around £16m over 4 years wheras a club who spends 1 season in the premier league then 3 in the championship can earn at least £88m, probably more like £120m after other income is added on.

[jonny72]

I can see clubs managing to get up then not really trying too hard to stay up beacuse the money earnt can pay off the clubs debts.  Why bother gambling £30m on new players when you are guaranteed this sort of income regardless of performance. Then when you go back down you have a head start financailly on 3/4's of the championship.

If hell froze over and we got promoted to the PL that is exactly how I would want and expect us to do it. Keep wages low at Championship levels (with an added bonus whilst we're still in the PL), invest in young players and build for the following season. Then use all the money left over to clear the debts and pay for a new stadium. Its pretty much what West Brom do and I'd be over the moon if we could emulate what they've done.

But at least the PL has acknowledged the distortion the money causes and are talking about doing something about it. Looks like the solidarity payment to Championship clubs will get a big hike to try and close the gap a bit, better than nothing. If we go up this season it's likely our share of the solidarity / TV money will be higher than our total turnover this season.

[OOH! SHAUN TAYLOR]

I read somewhere at the end of last season that because Birmingham went back up at the first time of asking that their second year's parachute payments would be split between all the other FL clubs. The higher up the league you finished the more you got but I believe STFC were due to get about 50k.

Did that definitely happen? If so, I assume it will happen again this year except there will be two lots of payments to distribute with Newcastle and WBA both going straight back up. And of course if the parachute payments are increased to four years then loads of clubs will get promoted back to the Prem in less time than that and there will be more money distributed to the other league clubs.

Or did I just dream that whole scenario up?

[jonny72]

Or did I just dream that whole scenario up?

You didn't dream it up, but most (if not all) of it goes to Championship clubs.

In the 2007/8 season there was a parachute payment of £11.2m going spare, on top of the £11.2m solidarity payment giving a total payment of £22.4m from the PL to the FL to share out - Championship clubs got £0.7m to £1.4m (dependent on league position), League One got £100k and League Two £70k.

[Barry Scott]

I thought you only qualified for parachute payments if you last more than one season? As far as i'm aware (or thought i was aware) if you go up and straight back down, you go down with what you came up with, less tv payments and what not.

[nevillew]

I thought you only qualified for parachute payments if you last more than one season? As far as i'm aware (or thought i was aware) if you go up and straight back down, you go down with what you came up with, less tv payments and what not.

That'd be a trampoline payment rather than parachute.

[DiV]

Why do the relegated clubs even get parachute payments.

You got relegated, your premiership income is gone. Tough shit.

[(.)Boobies(.)]

I read somewhere at the end of last season that because Birmingham went back up at the first time of asking that their second year's parachute payments would be split between all the other FL clubs. The higher up the league you finished the more you got but I believe STFC were due to get about 50k.

Did that definitely happen? If so, I assume it will happen again this year except there will be two lots of payments to distribute with Newcastle and WBA both going straight back up. And of course if the parachute payments are increased to four years then loads of clubs will get promoted back to the Prem in less time than that and there will be more money distributed to the other league clubs.

Or did I just dream that whole scenario up?

That is how it works, yes. And this season Newcastle and West Brom have done us all a favour and their chute payments will be distributed to the rest of us, final league placing deciding what we all get.