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What are parachute payments?

16 Aug 2017

What are parachute payments?

Parachute payments are made to clubs after they are relegated from the Premier League.

They allow clubs to invest in their teams, and wider operations, in the knowledge that should they be relegated they have provisions in place to re-adjust their finances.

Since 2016/17, payments are made over three years, with the amount received decreasing after each year.

Clubs relegated prior to the 2016/17 season continue to receive parachute payments across four years, as long as they do not return to the Premier League in that time.

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