PL & EFL in talks to remove parachute payments

[Putney]

55 minutes ago, yeadonowl said:

Your first sentence highlights the issue 

 

The premiership accessibility is very limited.

 

In a usual season 2 out of the 3 places would be taken up by a team with a parachute payment

 

Yo- Yo clubs are being rewarded not only for their promotion season but also getting a 3 year kicker for a season of abject failure

 

Parachute payments need removing with the players contracts amending to include wage reductions so the relegated clubs can meet their FFP obligations 

 

In all likelihood’s a relegated side will also be able to sell a couple of players for huge money to cover any shortfalls 

 

For sake of argument, let's pretend parachute payments ceased to exist. How are the current EFL clubs meant to not only get promoted to the PL but sustain themselves as a member of? 

 

Either they bank the money and prepare to go down with a view to solidify as a yo-yo club (problematic in itself) or they spend the money and hope to compete.

 

Wage reductions aren't compulsory and probably wouldn't be legally enforceable as mandatory to all contracts. With this and the above in mind, what calibre of player is realistically going to join them on a permanent basis? The likelihood is inflated fees for average players which then poses another issue when they can't offload players. Hello FFP or hello large squad turnover, putting yourself in a worse position than prior to clinching promotion.

 

The issue as Willie Henderson says is the amount of money in the PL, not parachute payments.

[Putney]

33 minutes ago, Tommy Crawshaw said:

 

The trouble is some clubs don't want to spend to compete in the PL when they get promoted. They are happy to get their season in the PL, pocket the hundreds of millions in TV money etc and then trouser another £43M when relegated.

 

They know they will have a team to good for the Championship and are content to yo yo up and down and keep the money rolling in.

E.g. Norwich, Fulham, West Brom.

 

Everyone is happy to list Norwich, Fulham & WBA, however isn't it something like 16 out of 24 Championship clubs have received parachute payments before? Then 4 or 5 League One teams?

 

In Fulham's defence it was £100m+ spent then recently didn't spend much due to covid/FFP. In West Brom's defence they did 8 seasons straight in the Premier League, I don't know about their finances.

 

 

Edited December 1, 2021 by Putney

[Putney]

Also Fulham have only had 2 profitable seasons in 23 years, the last one in 2011.

[yeadonowl]

1 hour ago, Putney said:

 

For sake of argument, let's pretend parachute payments ceased to exist. How are the current EFL clubs meant to not only get promoted to the PL but sustain themselves as a member of? 

 

Either they bank the money and prepare to go down with a view to solidify as a yo-yo club (problematic in itself) or they spend the money and hope to compete.

 

Wage reductions aren't compulsory and probably wouldn't be legally enforceable as mandatory to all contracts. With this and the above in mind, what calibre of player is realistically going to join them on a permanent basis? The likelihood is inflated fees for average players which then poses another issue when they can't offload players. Hello FFP or hello large squad turnover, putting yourself in a worse position than prior to clinching promotion.

 

The issue as Willie Henderson says is the amount of money in the PL, not parachute payments.

Plenty of teams have come from the championship and stayed in the premier league. Crystal Palace, Burnley, West Ham etc etc I mean Leicester even won the league

 

Any players signed after promotion should have a wage reduction built into the contract to account for reduction of income. Either that or a release clause

 

If, and I hope it happens, Leeds are relegated this season. They will be entitled to parachute payments of let’s say £50m next season. Add into that the probability of selling Phillips and Raphina for £75m. How can that be deemed a fair and level playing field for the championship?

[Putney]

17 minutes ago, yeadonowl said:

Plenty of teams have come from the championship and stayed in the premier league. Crystal Palace, Burnley, West Ham etc etc I mean Leicester even won the league

 

Any players signed after promotion should have a wage reduction built into the contract to account for reduction of income. Either that or a release clause

 

If, and I hope it happens, Leeds are relegated this season. They will be entitled to parachute payments of let’s say £50m next season. Add into that the probability of selling Phillips and Raphina for £75m. How can that be deemed a fair and level playing field for the championship?

 

Clubs do try to include wage reductions in contracts, it isn't a new concept that's yet to take off.

 

If you want to include it on all contracts as a PL rule then I'm not sure how that's legally possible. It'll be at the discretion of clubs and something which they know works against them signing players.

 

 

[Big Malc]

Couldn’t the Premier League introduce a rule that all contracts should include a relegation reduction clause, for every team from top to bottom?

 

They seem to operate outside the rules of the rest of the country anyway, they could withhold membership if a club refused.

[the third man]

22 hours ago, Big Malc said:

Couldn’t the Premier League introduce a rule that all contracts should include a relegation reduction clause, for every team from top to bottom?

 

They seem to operate outside the rules of the rest of the country anyway, they could withhold membership if a club refused.

 

Of course they could, but they wont and the failure payments will stay after the consultation

[owlinexile]

On 30/11/2021 at 13:59, scram said:

Of course it hasn't - not in a regulatory sense - but it certainly does have "soft power"

 

It's on display perpetually - look how many govts fawn over FIFA to try to get the world cup for eg

 

FIFA has the power to ban the England team from their comps due to govt interference

 

fizz em.

 

We can start our own FIFA.  Without the blackjack and hookers.