Parachute payments

Discussion in 'Bulletin Board' started by icer, Aug 8, 2019.

  1. icer

    icer Well-Known Member

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    Maybe a bit off of todays topic and maybe a welcome diversion for deadline day but I go thinking today. Parachute payments are something created by the leagues that creates an unfair position in the Championship. However what were they actually created for?

    I always assumed it was to offset the wages from contracts signed for prem level however it seems to fund a huge spend on new signings. So what exactly was the original purpose?
     
    icer, Aug 8, 2019
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  2. Dan

    DannyWilsonLovechild Well-Known Member

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    To stop their relegated teams going bust.
     
    DannyWilsonLovechild, Aug 8, 2019
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  3. Austiniho

    Austiniho Well-Known Member

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    I thought same as you, so that teams could pay the players on premier league contracts without getting into financial difficulty. But I’d guess most clubs have a relegation clause in the big contracts?
     
    Austiniho, Aug 8, 2019
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  4. portsmouth tyke

    portsmouth tyke Well-Known Member

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    Its a joke ( imo) run your clubs finances accordingly and you won't end up in the 5hit, why should the elite league still pay when you are no longer a nember
     
    portsmouth tyke, Aug 8, 2019
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  5. Dan

    DannyWilsonLovechild Well-Known Member

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    Generally the PL have offered sweeteners to ensure they got slightly unpopular things through that didn't assist the elite. "Solidarity payments" to offset the PL academy structuring for example.

    I cant recall when they came in or the exact reasoning. But there were a fair few clubs who struggled with wages as they dropped and I think it was an attempt to stop the fire sales for relegated teams.
     
    DannyWilsonLovechild, Aug 8, 2019
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  6. NathanBFC94

    NathanBFC94 Well-Known Member

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    Beyond a joke in my opinion. Literally a huge reward for failure.
     
    NathanBFC94, Aug 8, 2019
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  7. Birkdale Red

    Birkdale Red Well-Known Member

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    They were created IMHO to allow the same dozen or so clubs to yo-yo between Prem and Champ for a few years, thus accumulating such wealth that the PL can demand PREMIER LEAGUE II

    And it won't be far away.
     
    Birkdale Red, Aug 8, 2019
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  8. Stephen Dawson

    Stephen Dawson Well-Known Member

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    It will be a franchise too.
     
    Stephen Dawson, Aug 8, 2019
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  9. Birkdale Red

    Birkdale Red Well-Known Member

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    That's what that old Bolton chairman was after, IIRC.
     
    Birkdale Red, Aug 8, 2019
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  10. Austiniho

    Austiniho Well-Known Member

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    What about all the clubs who have free fallen after the money dried up? Sunderland, Bradford, Bolton, Coventry, Ipswich, etc? They are not exactly banging on the door for PL2. People play with football clubs like they’re on champ manager. Which is why when they’re given a load of money to spend after relegation.... that’s exactly what they do.
     
    Austiniho, Aug 8, 2019
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  11. Dja

    Django Well-Known Member

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    Personally I think there should be laws in place that every club has to have relegation clauses inserted in contracts rather than clubs been able to rely on parachute payments
     
    Django, Aug 8, 2019
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  12. Birkdale Red

    Birkdale Red Well-Known Member

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    They'd have bitten your hand off for a PL2. Gartside tried to get one, and make it closed shop.
     
    Birkdale Red, Aug 8, 2019
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  13. Stephen Dawson

    Stephen Dawson Well-Known Member

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    Eventually there will be a re-structuring. There are too many clubs hitting financial difficulties. Some big clubs will get a reprieve when this happens as will some big poorly run clubs.

    This re-structuring will cause clubs that are being well run to suffer because the draw of playing one of the big teams twice a season will be taken away. Hence they will hit financial problems.

    It can go on and on and on.
     
    Stephen Dawson, Aug 8, 2019
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