Author Topic: Parachute payments - shocker !  (Read 1310 times)

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Albionic

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Parachute payments - shocker !
« on: April 05, 2021, 06:57:31 PM »
I just read this, https://www.inbrief.co.uk/football-law/premier-league-parachute-payment/

I was under the impression that parachute payments were for 3 years but seems there is a caveat ! Was I the only 1 unaware of this???

If a club is promoted to the Premier League again during the three-year parachute payment period, the payments stop as they will once again enjoy all the financial benefits of playing in the Premier League.
 
The change in rules also dictate that clubs relegated after a single season in the Premier League will only receive 55 per cent and 45 per cent over two seasons with the third payment eliminated entirely.
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gazberg

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Re: Parachute payments - shocker !
« Reply #1 on: April 05, 2021, 07:22:38 PM »
Same money just given over 2 years then. We am rich by EFL standards.

Albionic

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Re: Parachute payments - shocker !
« Reply #2 on: April 05, 2021, 07:56:50 PM »
No, the 3rd year payment of 20% is lost !  this will have to be factored into budgets.
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TheJacko2000

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Re: Parachute payments - shocker !
« Reply #3 on: April 05, 2021, 07:58:47 PM »
I'll let the Fulham fans know. It won't affect Newcastle or Sheffield United   ;D
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Albionic

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Re: Parachute payments - shocker !
« Reply #4 on: April 05, 2021, 08:04:20 PM »
I'll let the Fulham fans know. It won't affect Newcastle or Sheffield United   ;D

Like the cut of your jib sir !
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gazberg

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Re: Parachute payments - shocker !
« Reply #5 on: April 05, 2021, 08:28:35 PM »
No, the 3rd year payment of 20% is lost !  this will have to be factored into budgets.

Sorry! i thought you meant the 100% over the 3 years was divided into 55/45 over 2.

My bad!

alex1

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Re: Parachute payments - shocker !
« Reply #6 on: April 05, 2021, 09:21:21 PM »
Something to think about for those folk who are quite relaxed about relegation. I think when there were those proposals for complete reform of the Premier League last year, there was some talk about chopping parachute payments even more.
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Albionic

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Re: Parachute payments - shocker !
« Reply #7 on: April 05, 2021, 09:48:21 PM »
I'm mentally positive about relegation from a football / entertainment perspective, however relegation is clearly financially crippling, Even More so than I understood !  This means we are in for another 2 year max "plan".
« Last Edit: April 06, 2021, 10:49:07 AM by Albionic »
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Baggies

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Re: Parachute payments - shocker !
« Reply #8 on: April 06, 2021, 07:00:39 AM »
As alex1 says, there is an appetite in the EFL hierarchy and with the top prem clubs to cut it even more. 

They want to limit the amount promoted sides can spend instead of giving them a safety blanket in case they are relegated.

They clearly haven't been paying attention to Premiership Rugby or Super League the last decade.
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overseas baggie

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Re: Parachute payments - shocker !
« Reply #9 on: April 06, 2021, 09:27:09 AM »
10 Championship clubs are currently under a transfer embargo.  We are in a great position this summer to buy the cream of the players in the current Championship at bargain prices - players who look well capable of stepping up and playing in the Premier League.  This is the summer when the transfer window catches up with COVID.

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Re: Parachute payments - shocker !
« Reply #10 on: April 06, 2021, 11:03:02 AM »
Isnt it also that if you get promoted the season after relegation that the final parachute payment gets distributed amongst the other Championship clubs?

It actually benefits clubs having a relegated side go straight back up.
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Re: Parachute payments - shocker !
« Reply #11 on: April 06, 2021, 11:17:35 AM »
10 Championship clubs are currently under a transfer embargo.  We are in a great position this summer to buy the cream of the players in the current Championship at bargain prices - players who look well capable of stepping up and playing in the Premier League.  This is the summer when the transfer window catches up with COVID.

Is Stoke City one of the clubs?  If so I would put in a bid for Nick Powell, ex England U21, who I think could be a replacement for Yokuslu.  He pops up with the odd goal.  Already playing in the midlands.
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Re: Parachute payments - shocker !
« Reply #12 on: April 06, 2021, 11:29:52 AM »
Is Stoke City one of the clubs?  If so I would put in a bid for Nick Powell, ex England U21, who I think could be a replacement for Yokuslu.  He pops up with the odd goal.  Already playing in the midlands.

While I can understand your interest in Powell he's a different type of player to Yokuslu, much more attacking orientated. He's not a CDM.
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chonobaggie

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Re: Parachute payments - shocker !
« Reply #13 on: April 06, 2021, 12:37:51 PM »
This isn’t anything new or a shocker.
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KN22

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Re: Parachute payments - shocker !
« Reply #14 on: April 06, 2021, 12:41:45 PM »
10 Championship clubs are currently under a transfer embargo.  We are in a great position this summer to buy the cream of the players in the current Championship at bargain prices - players who look well capable of stepping up and playing in the Premier League.  This is the summer when the transfer window catches up with COVID.

Are we though? I am not at all sure that our finances are in that good a shape. Better than some for sure, but still not great given recent financial information from the club.

baggiejohn

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Re: Parachute payments - shocker !
« Reply #15 on: April 06, 2021, 01:15:42 PM »
10 Championship clubs are currently under a transfer embargo. We are in a great position this summer to buy the cream of the players in the current Championship at bargain prices - players who look well capable of stepping up and playing in the Premier League.  This is the summer when the transfer window catches up with COVID.

Only because they've chosen to delay publishing their accounts.

A delay, permitted by companies house, but not implemented by the EFL.

At the time of writing, our own accounts haven't been published yet.
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Albionic

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Re: Parachute payments - shocker !
« Reply #16 on: April 06, 2021, 01:58:41 PM »
This isn’t anything new or a shocker.

Maybe not to you, but was to Ill-informed me! I thought it was 3 years whatever
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NJS

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Re: Parachute payments - shocker !
« Reply #17 on: April 06, 2021, 02:55:25 PM »
While I can understand your interest in Powell he's a different type of player to Yokuslu, much more attacking orientated. He's not a CDM.

Correctly spotted, but he's a tough tackler for defending from the front.   Anyway, Stoke City is due to come out of the embargo as its  FFP problems are only "administrative".
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overseas baggie

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Re: Parachute payments - shocker !
« Reply #18 on: April 06, 2021, 06:14:27 PM »
Are we though? I am not at all sure that our finances are in that good a shape. Better than some for sure, but still not great given recent financial information from the club.

Yes, we are in better financial shape than nearly every relegated club, others than ourselves (last time) and Norwich

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Re: Parachute payments - shocker !
« Reply #19 on: April 06, 2021, 06:15:38 PM »
Is Stoke City one of the clubs?  If so I would put in a bid for Nick Powell, ex England U21, who I think could be a replacement for Yokuslu.  He pops up with the odd goal.  Already playing in the midlands.

Yes they were one of the 10 but it looks like their embargo has already been lifted.  They don’t need the money in strict financial terms given their ownership, but they are in an FFP mess

overseas baggie

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Re: Parachute payments - shocker !
« Reply #20 on: April 06, 2021, 06:17:22 PM »
Only because they've chosen to delay publishing their accounts.

A delay, permitted by companies house, but not implemented by the EFL.

At the time of writing, our own accounts haven't been published yet.

No, that’s not the reason.  Clubs have to submit management accounts either quarterly or monthly (when on the serious watch list) to the EFL regardless of their audited accounts timing

baggiejohn

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Re: Parachute payments - shocker !
« Reply #21 on: April 06, 2021, 06:48:54 PM »
No, that’s not the reason.  Clubs have to submit management accounts either quarterly or monthly (when on the serious watch list) to the EFL regardless of their audited accounts timing

This what Coventry City CEO had to say on it

Quote
Coventry City chief executive Dave Boddy criticises 'ridiculous' transfer embargoes placed on some Championship clubs

Dave Boddy has been with Coventry City since 2017

Transfer embargoes imposed on some Championship clubs for opting to follow Covid-related government guidelines are "ridiculous", according to Coventry City chief executive Dave Boddy.

Coventry, Luton, Cardiff and Derby all used the option of a three-month extension to file company accounts.

But the EFL has implemented transfer embargoes as they were not filed by the end of February as originally intended.

"It's disappointing that the EFL have chosen to do this," said Boddy.

"The government has allowed companies to extend the deadline to file accounts and we chose to do this, extending from the end of February to the end of May.

"It's ridiculous that the EFL's regulations on this do not replicate this approach that the government has taken, especially when they have amended other rules of theirs during the pandemic.

"The EFL's imposition of this does not have any effect on us, but it is disappointing nonetheless that they have taken this approach to take action against clubs who are simply doing what the government is allowing us to do."

As the EFL is a membership organisation, clubs have the power to change rules and regulations via a vote.

Embargo is 'simply an anomaly'
Reports suggest that as many as 10 Championship clubs have been put under transfer embargoes, which came into force last month.

These embargoes are due to be lifted once the clubs' respective accounts have been received by Companies House.

They should also have little effect as the next transfer window does not open again until after the end of the current season.

Read more here

https://www.bbc.co.uk/sport/football/56648190
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Albionic

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Re: Parachute payments - shocker !
« Reply #22 on: April 06, 2021, 06:52:50 PM »
embargo ends before transfer window opens, erm not really an embargo then
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overseas baggie

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Re: Parachute payments - shocker !
« Reply #23 on: April 06, 2021, 07:25:44 PM »
embargo ends before transfer window opens, erm not really an embargo then

My understanding from a separate article was that these clubs all had a transfer embargo during the January window, well before their accounts were due to be filed

KN22

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Re: Parachute payments - shocker !
« Reply #24 on: April 06, 2021, 10:33:08 PM »
Yes, we are in better financial shape than nearly every relegated club, others than ourselves (last time) and Norwich

Really not wishing to be argumentative but what evidence have you to support this?