Are Charlton entitled to Parachute Payment?

Fawny

Hope someone can help me out here. As I understand relegated clubs from the Premier League get parachute payments paid of £48m over four years. This is divided up as £16m for the first two years and then £8m for the remaining two years. Due to Cardiff being beaten in the play offs this now leaves the three teams relegated from the Premier League last year 2010-2011. With one of West Ham, Blackppol & Birmingham now guaranteed promoted back to the Premier League thus not being entitled to any parachute money next season. My question is would we as a club get a piece of this £16m pie or does this just go straight in to the fat cats at the FA/Premier League?

AFKABartram

I think it gets split throughout the other clubs in the league

Fawny

Thanks AFKABartram I thought this was the case. However, would the £16m get split between all clubs that start the 2012-2013 season just in The Championship or in Leagues 1 & 2 also?

Jodaius

I seem to remember hearing fairly recently that they were going to stop splitting the payment between other clubs. There is certainly no provision for this in the current PL handbook, although I understand that it may have happened in the past.

Fawny

That would sound about right Jodaius straight in to the fat cats pockets at The Premier League! the extra money would certainly come in useful.

Jodaius

I may be wrong, but I thought I heard it somewhere (possibly here)...

cafcdave123

I definitely read recently that it is divided between the rest of the league because I remember thinking do the clubs still getting parachute payment get even more money

iaitch

So we want to charge the Red Devils for landing on our pitch?

Fawny

Would the split be just for championship clubs or would all teams in leagues 1&2 also get a share of the £16m?

Rob62

It does get split, so we will get a share

Fawny

Keep up the good work iaitch, beautiful.

Ollywozere

Steve Kavanagh confirmed recently that the parachute payments are no longer shared out

Kap10

So we want to charge the Red Devils for landing on our pitch?

Damn beat me to it

Fawny

Would love to know exactly where that parachute money goes then if it isn't shared out.

Jodaius

Reading the Premier League handbook, the TV money is allocated using 'shares'. So if, for argument's sake, each PL club gets 1 'share', then clubs relegated last year will get 0.55, clubs relegated 2 years ago will get 0.45, and clubs relegated 3 and 4 years ago will get 0.25 each. I would guess in the case that clubs are then promoted again, then their 'shares' would simply not be allocated, therefore effectively the 'extra' parachute money is effectively shared between the PL clubs and those already receiving parachute payments. This is purely conjecture based on the rulebook, but would seem to make sense.

Of course in reality there is not really any 'extra' money, just effectively one fewer club to share the total revenue between.

Jodaius

http://www.premierleague.com/content/dam/premierleague/site-content/News/publications/handbooks/premier-league-handbook-2011-12.pdf

Section C, paragraph 34 onwards (starting on page 90) for anyone who's that interested. It's not a particularly exciting read.