Parachute Premier League 2016-17 – Several criticisms on the so-called “Parachute” triggered in Italy in the past season. However, Serie A is not the only league in which this system is implemented. We are talking about the payments that teams get over the years after having been relegated from the higher leagues.
This is something that happens in the Premier League as well, a league in which TV rights are definitely higher that those paid to the Italian sides.
The millions of pounds that fell on clubs for new TV rights agreements forced the UK Championship to revisit its criteria. Until 2015/16, clubs relegated to the Championship received contributions for a period up to four seasons, in case they did not manage to return to the Premier League promptly.
By 2016/17, however, clubs will receive the “parachute” for three years, only two if these clubs return to the Championship the year after they were promoted.
The money is distributed fairly according to a predetermined criterion:
- In the first year, clubs receive 55% of the fixed fee relative to the TV rights of the Premier League;
- The second year, 45%;
- The third year, 20%.
As stated before, in the case of a club that is relegated the year after promotion, the same will receive 55% in the first season and 45% in the second. Previously, teams received 55% for the first year, 45% in the second and 25% in the third and fourth year.
Parachute Premier League 2016-17 – Revenues
Overall, in the 2016/17 season, the Premier League has distributed 219.1 million euros to those teams relegated in the last few seasons, approximately £250 million. The teams that made the most of this were Aston Villa, Newcastle, and Norwich, which were relegated back in the 2015/16 season. Each of them earned £40.9 million. This is the amount that Hull City, Sunderland, and Middlesbrough should cash in the next season as well due to the relegation suffered in the 2016/17 season.
Queens Park Rangers, who was relegated in 2014/15, receives £31.1 million for its second-year parachute, while Cardiff City and Fulham (relegated in 2013/14, third year) earn £16.2 million in the same way as Reading and Wigan, both in their last year of the parachute.