Possible Cash Windfall ??

In years gone by, if a club relegated from the Prem was promoted back after one season in The Championship, any outstanding parachute money was shared among the other Championship clubs.

OK I know the amount wouldn't build a new stand but it would still come in useful.

Anyone know if this is still the case ?

 

No idea, but is that West Ham you are talking about?

 

Ohyes. Indeed it is Mex.

 

This was touched upon in another thread recently - can't remember which one - and the consensus was that, yes, it's still the case. Can only guess at how much though - if the parachute payment is £4M, which rings a bell, then I assume we'd get one twenty fourth of that - around £160K

 

Could do with a bit of that coin from the irons then...fingers crossed.

 

You are right, the money is shared around. Not a huge amount, but might fill the tank of a Bentley.

 

They should just use it to take all of the constant away fans to an away game. Not sure how much that would cost though...

 

BB, it would depend on the criteria on how it would be shared out as it could be 1/24 as you mention, but it could also be 1/21 if you exclude those who have just come down or if you remove all of those who are receiving parachute payments, then we'd get an even bigger share.

 

I don't know the formula for dividing out the parachute money (I'm nigh-on certain that a small percentage now goes to League One and League Two). But I am absolutely certain that to a relegated club, the payment is £16m in years one and two, and £8m in years three and four. I'm also fairly sure that if a club goes up, the other clubs get their little windfalls on the same schedule (so we would get our small share of £16m this year, and small shares of £8m in the subsequent two seasons).

 

Imagine if a Premiership club goes down twice in consecutive seasons, they would have an unbelievable financial advantage in Div 1.

 

They could pay for my flight to Cork!

 

I could be wrong, but I seem to recall that the money is shared out, but only for one season (and not all three). I seem to recall this from when Newcastle made an immediate return.

 

Parachute payments are now £48m over 4 years for relegated clubs.

 

I believe the parachute payments are £16m the first 2 years and £8m for the 3rd and 4th year after relegation.

I also think that money gets taken away from the re-promoted team (if that's a word) from whichever year they are promoted (so 1st would be £16m, 3rd £8M) and redistributed between all the team except the 3 coming down! So my assumption is that we get 1/21 of £16m, so just shy of £762k.

(these aren't facts, just what I believe)

 

But when Newcastle went up, parachute payments were only split over two years.

(you might still be right, but the situation for clubs going down has changed since Newcastle's flirtation with this division)