| Parachute Payments 14:28 - Feb 3 with 1772 views | Willy_WonkR |
With the obvious skewing of the Championship due to parachute payments I've been wondering whether there is an alternative. There must be an argument to not having them at all given huge amounts of money that clubs receive in the Premier League.
As I understand it the point of the parachute payments are to protect clubs that have to spend large amounts of money to be competitive in the top tier should they get relegated. Do they HAVE to spend the money? Probably, otherwise the 3 that go up will nearly always be the ones to come down.
Rather than giving a fixed amount to a relegated club could the payments be tied into the contracts of the players they have? For a contract that is signed when a PL club the PP will cover x% for the remainder of the contract. If the player leaves then they no longer get that payment. In the current set up, if Leeds get relegated, they'll most likely sell Raphinha and get a large payment but they'll also get PP to help cover his wages.
You can probably tell I'm far from an expert, so I expect that there are many holes in my logic. |  | | |  |
| Parachute Payments on 14:54 - Feb 3 with 1698 views | derbyhoop |
Parachute payments are basically there to cover the running down of contracts where players on PL level wages cannot be sold and the club is liable for wages out of step with the Championship. Even if it allows relegated clubs to hang onto those players in an attempt to go straight back up. Longer term, the FFP rules kick in (as we found out).
Ideally, clubs would put relegation clauses into the player contracts but try getting somebody to sign for a struggling PL club, knowing their wages would drop 60% the next season.
And, if you think clubs are going to release details of individual player contracts to the governing bodies, especially where 2 different bodies could be involved, then you are sadly mistaken. |  |
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| Parachute Payments on 15:04 - Feb 3 with 1680 views | ozranger |
it is interesting I have been considering something exactly along these lines. It is also quite simple to employ. At the end of the season that a club is relegated, the salaries of the club's players will be known by the EFL/FA and thus any payment should be locked to a percentage of that total salary and not an arbitrary set figure as they have now.
If we were to assume a 25 player senior squad (and not a 100 like some clubs) and then subtract from the total salary value of that 25-man squad, at the end of the season they were relegated, the amount of 25 times the average salary of all senior players in the EFL the previous season, a calculation that really should not be that hard, then the amount to be provided by a parachute payment would solely be equivalent to what that club would be required to pay above what they would normally pay for the salaries of the players based on EFL standard average salaries.
The problem, as you say, is that they sell players like everyone else and thus get to double-dip by obtaining both the value of that player when sold plus a payment for that player as part of the parachute payment. By providing a weekly or monthly payment for the parachute payment, based on the current squad and only taking into account those players who were part of the squad at the end of the previous season, then the double-dipping would be eliminated. That is, if a club started with 25 and sold two, then you would the club would only get the payments for the remaining 23.
Then in year two and three the calculation continues but only with those players they had at the time of their relegation. That is, not a diminishing value as per what is currently used with the arbitrary value, but actually paying for the players. The percentage of that payment, however, could be reduced each year, for these two years, if that may be an extra option.
Thus, essentially, instead of giving clubs a gift each year for a few years, it is only a portion of the salary that is being paid to the club, to cover the players salaries of whom they had on the books on the final day of the season they got relegated. That would then force clubs to do what all other clubs do, sell players to buy players.
I guess the EFL would actually have to do some work and do that alongside the FA. Could they? Would they? |  | | |
| Parachute Payments on 15:20 - Feb 3 with 1638 views | QPR_John |
The problem arises because the Premier League and the Football League are run by two different organisations and rules although both connected by promotion and relegation. Clearly the PL wanted to remove promotion and relegation altogether but realised early on this would not work. The next best thing was to introduce parachute payments which is beginning to lead to a semi closed shop helped in no small way with the Football Leagues FFP policies. I would not be surprised if in a few years time maybe with the odd exception the three relegated clubs are promoted the next season. |  | | |
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