Parachute Payments

[Royal & Ancient]

Is it just a rumour that as West Brom. have gone back up that they will not be receiving a parachute payment and that these monies will be distributed to other Clubs of whom Reading is one?

If so then all this talk about not having player investment funds is not entirely true.

[Ian Royal]

It gets split between teams across the football league I think, so it won't amount to a great deal of money for us by the time we get our share although obviously there's Newcastle's too. And there is still the remainder (£3m?) of that £4m we apparently needed to find to break even... or whatever the statement was.

Even if it's £11m for each of Newcastle & West Brom that's paid in one lump sum, between only the teams still in the championship from last season after promotion and relegation, that's "only" £1.2m for Reading and I'm pretty sure it isn't done like that.

[howser]

It is split between the "other" Championship clubs

[Dirk Gently]

Nearly - any unused parachute payments are split equally amongst all other Championship teams not receiving parachute payments.

So West Brom & Newcastle's £10m each will be split amongst 20 teams (all except the 3 who've just come down and also Boro who are now in the 2nd year of receiving payments.) That helps the overall balance sheet but doesn't change the competitive balance much.

Note also that the PL have strong-armed the FL into accepting a new deal - now parachute payments will go for 4 (four!) years - £16M +£16M+£8M+£8M. So in future years there will either be a lot more teams with parachute payments or a lot more money to be shared,

[Z175]

Actually only one of the parachute payments earmarked for NUFC and WBA will be over the championship.

The other one will go back into the premierleague pot. I know it seems a bit unfair but it is their money. They cleverly produced a rule that if more than one team came back up, they only pay out one parachute payment across the board.

This was widely reported last year when us, Wolves, Birmingham were in contention to go up.

On the increased payments I think this is a good hting overall. When top sides in the championship need to poach players they do so anyway - now the fees will just be a bit higher. Should improve the standard of the league.