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Changes to parachute payments from 2016/2017 onwards

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http://www.football365.com/afc-bournemouth/9873622/Parachute-payments-for-promoted-Premier-League-clubs-overhauled?

Good, or not?

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Not so good if you are relegated after one season. But I agree with the principal. I have always considered 3 years of parachute payments a bit of an unfair advantage, and if it continued then you would end up with a small group of yoyo clubs, and other Championship clubs that never got a fair chance.

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I still feel the parachute payments are totally wrong. Clubs in the Premiership are getting enough money, as it is. Why when they get relegated should they be at an advantage over other clubs in the Championship ?Championship clubs currently receive £2.3m a season, whilst those relegated get £24m in the first year, then £19.3m, then £9.6m for each of the next two years.

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[quote user="SwindonCanary"]I still feel the parachute payments are totally wrong. Clubs in the Premiership are getting enough money, as it is. Why when they get relegated should they be at an advantage over other clubs in the Championship ?Championship clubs currently receive £2.3m a season, whilst those relegated get £24m in the first year, then £19.3m, then £9.6m for each of the next two years.[/quote]I assume you understand though that if a figure of say, 130 million is quoted, then its not delivered to the club in a big box, and the board of directors fill a bath with it, smoking big cigars?Operating costs, and specifically wages are a lot higher in the Premiership, very few clubs actually turn a decent profit ( apart from the global mega brands line Man U etc)The parachute payments are to try and ensure that relegation does not mean total financial implosion for clubs, especially clubs of our comparative means.

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The problem is that the performance of relegated clubs - off the pitch as much as on - over recent seasons suggests that it is not at all easy to adjust, even after one season in the PL.

I believe the stat is something like 3 clubs promoted straight away out of the last 18 relegated, so it doesn''t appear things are that ''unfair'' and there is less of an advantage than you''d think.

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Parachute payments are a good thing, although do need tweaking a little and this is a good start. As Morty said there are a lot of costs associated with being in the Prem, notably player costs, but also a lot of other staff costs.

Norwich getting promoted meant that the parachute payments they would have received had they stayed in the Championship are being spread amongst the Prem clubs (just over £1m each), it would be better for that money to be spread amongst the Champ teams in my opinion.

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Parachute payments are needed - contracts for players last years and even with relegation clauses simply not giving any more cash would mean instant squad change upon relegation.   Not sure what the right balance is this is a minor improvement.

It is right that the non spent parachute payments are shared - it seems wrong for them to land with the already affluent prem teams tho.  Grass roots would be superb or a fund to support league 1/2 & non league clubs which underpin this countries football addiction

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Agreed, there are a lot of costs associated with being in the Premiership but surely the £64.8million (for the lowest club) and double that the following season, should be enough to cover the costs.It''s because of these payments that we have yo-yo clubs, it would be far better for every club to start ''on a level playing field'' 

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I think parachute payments are a sensible recognition of the pressures on every football club to maximise the amount it spends on wages. In theory the clubs should be run by grownups who can manage the finances sensibly. In reality it is tempting to spend the money now to try to stay up, but in the end 3 clubs are going down every season. Hence the problems with clubs going down and finding themselves in financial trouble, Portsmouth being the obvious example. Yes it was their own fault, but it''s not good for football to have clubs going out of business.

Also I think the reality about the extra Prem money is that in some ways it''s illusory - you''re competing with clubs in the Prem, who also have more money, for the same group of players, so a lot of it just gets passed straight through into higher wages. Alan Sugar said it is like prune juice, it goes straight through, and I think he''s got a point.

It only helps if you get players in wisely so that if you are relegated, they''re also the sort of players who will boost your promotion push. It''s about trying to sign Tetteys and Howsons rather than Fers and Elmanders. Last season we just did enough in this way that when we got in a good manager, the squad showed they were actually the best in the Champ. Look at what happened to the other clubs relegated with us though, e.g. why did Fulham find themselves having to get in a CB like Turner ?

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PS. Are you aware that the parachute money saved from our Premiership return gets shared amongst the other Premiership clubs - The Championship sees none of it ! 

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[quote user="SwindonCanary"]Agreed, there are a lot of costs associated with being in the Premiership but surely the £64.8million (for the lowest club) and double that the following season, should be enough to cover the costs.It''s because of these payments that we have yo-yo clubs, it would be far better for every club to start ''on a level playing field''  [/quote]The Premiership is a totally separate entity to the football league, and I suspect every single Premiership club would be more than happy if it were a closed shop.Football is not a level playing field, there will always be haves and have nots. Sure its nice to look after football as a whole, but ultimately clubs will want to look after themselves.

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"Sure its nice to look after football as a whole",   The Premiership was created so that that didn''t happen, it was so that the BIG clubs grabbed the majority of the money and it''s worked better than any of them could have imagined !  

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No parachute payments would make it harder for teams like Norwich, Southampton, Swansea etc to establish themselves in the Premier League.

Clubs wouldn''t have the security to spend money on new players or pay their wages and would flounder around at the bottom of the league whilst clubs who stay up become richer and richer - putting Championship sides further and further behind.

Are there really that many yo-yo clubs? Of the three going up only Norwich have been in the Prem in the last 9 years. QPR might become a yo-yo team, but even without parachute payments you''ll get a collection of a few clubs who sit somewhere between the Championship and the Premier League.

The only way of having a ''level playing field'' is for all the Premier League money to be spread evenly between every club in the country and that really is never going to happen.

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[quote user="SwindonCanary"]"Sure its nice to look after football as a whole",   The Premiership was created so that that didn''t happen, it was so that the BIG clubs grabbed the majority of the money and it''s worked better than any of them could have imagined !   [/quote]But football has never been any different, there has always been "haves" and "have nots".The real winner, of course, is Sky.

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[quote user="Its Character Forming"]and the players Morty ![/quote]Football players have always been paid more than folks with normal jobs, they have a unique skill, and get paid the rate the market sets.Maybe I''m fine with it because I am overpaid for what I do lol[;)]

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The greater risk associated with a shorter period over which parachute payments will be paid for clubs facing immediate relegation from the Premier League, coupled with the relaxation of FFP regulations for Championship clubs, makes the imperative for new club owners capable of injecting significant new capital into the club all the more pressing.

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[quote user="Highland Canary"]The greater risk associated with a shorter period over which parachute payments will be paid for clubs facing immediate relegation from the Premier League, coupled with the relaxation of FFP regulations for Championship clubs, makes the imperative for new club owners capable of injecting significant new capital into the club all the more pressing.[/quote]The time period may be shorter but the actual amount of money is much greater thanks to the big increase in 2016/17. Instead of £65 million spread over 4 seasons it looks like £120 million spread over 3 or for one season wonders, £100 million spread over 2.Which ever way you cut it, it''s very big bucks and a huge boost when compared with what the Championship clubs get. Clubs in our bracket will just need to be a little more careful over contract clauses and durations.

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[quote user="Highland Canary"]The greater risk associated with a shorter period over which parachute payments will be paid for clubs facing immediate relegation from the Premier League, coupled with the relaxation of FFP regulations for Championship clubs, makes the imperative for new club owners capable of injecting significant new capital into the club all the more pressing.[/quote]If I have understood the new rules for the Championship correctly they are not being relaxed that much. The amount a club can lose has increased from £6m last season to £13m for the season to come, and then to £15m (with a maximum of £39m over three years) from 2016-17. It is a rise but not a staggering one. And that is without getting into the question of whether we want to get into the invidious position of, for example, Bolton, where the club  owes £160m or so to its owner. Where a rich owner certainly would come in handy would be with infrastructure projects, such as ground expansion.

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[quote user="morty"][quote user="Its Character Forming"]and the players Morty ![/quote]Football players have always been paid more than folks with normal jobs, they have a unique skill, and get paid the rate the market sets.Maybe I''m fine with it because I am overpaid for what I do lol[;)][/quote]

Ah - I remember when Roy Keane was on £40k per week around 2000 and it was headline news! Nowadays for top Prem players that would be nothing but I''d still be happy to be on £40k a month, never mind per week! Like you say they''ve always been overpaid but when a Prem player canbe setup for life after a season or two, it does make it hard to manage them.

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[quote user="Its Character Forming"][quote user="morty"][quote user="Its Character Forming"]and the players Morty ![/quote]Football players have always been paid more than folks with normal jobs, they have a unique skill, and get paid the rate the market sets.Maybe I''m fine with it because I am overpaid for what I do lol[;)][/quote]

Ah - I remember when Roy Keane was on £40k per week around 2000 and it was headline news! Nowadays for top Prem players that would be nothing but I''d still be happy to be on £40k a month, never mind per week! Like you say they''ve always been overpaid but when a Prem player canbe setup for life after a season or two, it does make it hard to manage them.[/quote]I am not saying they are doing it for the noble cause of sport, but I''m not so sure that anyone at the top of their game, which most in the Premiership are, would have that mindset. Sure, they can have everything money can buy, but I doubt many would think "You know what, I have enough now, I''ll just give it about 75% this Saturday.

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