11 Oct 2016 10:24:15
Edds/ Reds question I've been wondering about for a bit when clubs are relegated from the prem the get a balloon payment to help with the reduction in monies. Using Newcastle for instance they have sold from my knowledge two players for 40+ million pounds does this reduce the balloon payments or do they still get what they are entitled to asking only as this puts them financially better off than any other team in the championship? Hope its clear what i'm asking. Thanks in advance.

{Ed002's Note - The parachute payments are made for up to three years (unless the club was only in the PL for a year in which case they will only get one years worth), and they stop if they return before the three years is up. The payments are a sliding scale and are not impacted by any sales the club will make. I am not sure of the final figures but these are going to be in the ballpark - and taking your example of Newcastle, they will get: (a) 216/17: circa £0M, (b) 2017/18: circa £30M, and (c) circa £15M.

So if the club return to the PL at the end of next season, they will not get payment (c). Selling players has no impact on these payments, which are their to compensate for the lack of television and media income.

Aston Villa will get the same, but Norwich only a single £40M payment.}

1.) 11 Oct 2016
11 Oct 2016 11:00:15
Thanks for the information ed2.

2.) 11 Oct 2016
11 Oct 2016 16:12:07
Thanks Ed2 been wondering and thought it a silly question but also unfair to the other teams. Great reply cheers.