Post
by tamada » February 25, 2024, 4:59 am
I was reading an article about the EPL and their 'parachute' payment system designed to cushion the financial losses of the 3 teams thaat get relegated from the EPL to the Championship.
It looks increasingly like the same 6 teams that got promoted and/or demoted in 2022/23 will be the same 6 team that go through the EPL and Championship's 'revolving door' end of this season.
The article reveals how the teams benefitting from the demotion parachute have a different budgetary focus than the 'also rans' of the rest of the Championship where most teams already have wage bills that exceed monthly income. The plight of teams falling foul of FFP rules is also discussed, with the very thin line being trod between investing in players that will guarantee being competitive and blowing one's budget. Of course, the first response is to sack the manager.
Everton's long-standing financial issues aside, it looks like Nottingham Forest will be penalized and they probably can't afford the financial sanctions (or demotion) that the likes of a Man City can bounce back from. Like Glasgow Rangers when they were fined and dropped 3 leagues, with deep pockets, they were back in the top-flight in 3 years. Water of a (obscenely rich middle-eastern sovereign wealth funds) duck's back.
Anyway, unless Everton falter, it looks like the same 6 teams will be swapping places. The 'parachute' is being seen as a bungee cord which financially, doesn't serve the rest of the Championship (and lower) very well at all.
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