Surely..........? they are designed for the 3 relegated Clubs to retain the core of their squad , payable when they get relegated, in order to support that ( all 3 of the 3 clubs ) club in its efforts to either retain their key-squad members who might otherwise leave to maintain their wage. Because the Club now doesn't get the same level of income it previously did from the 3 streams ( PL itself, Crowd income , SKY ) - it knows it has to 'cut it's cloth' etc. So in relation to the players- if
it was in their contract to be paid a reduced wage upon relegation, the Parachute Payment money would be useful to top-up that wage to its previous level. Because the 3 relegated Club are making less money to keep those players
It's rewarding Failure.
Hardly. A Club has to go up and ( nearly always ) bounces straight back down in order to get P.P.'s. No prizes for spotting the odd one out of the list . Leicester shouldn't ever have come down but you had Brendan Rodgers under which LC had previously two finishes at 5th position & one at 8th position.
What's that got to with quote, "promoting teams can risk investing a bit to try & stay up".
Rather, it's rewarding failure & keeping a 'Closed Shop' a 'Closed Shop'.
It's rewarding the relegated Clubs so they can invest a bit to keep their high wage earners.
PP's go to the bottom 3 .
---oOo---
If the subject is the amount of monetary reward given to the promoted three going up to the Prem - I suppose we could call them
" Promotion Payments" ?
Parachutes literally give someone a 'softer landing'....
But the "Closed Shop" part of the Premier League is not the relegated clubs. Otherwise how can sides like Ipswich, Luton, Blackpool, Wigan, Bolton etc, experience League 1 and the Premier League within the same decade?
The closed shop of the Premier League is the "Big 6", how many times have one of those been relegated? Fundamently they're "Promotion payments" in a sense, you only qualify for then upon promotion to Premier League,but that's neither here or there.
I don't like the Parachute Payment model, but it's like complaining about a splinter on an amputated thumb. The problem you want to address, the inequality between Clubs, comes about as a result of decisions made much higher in the food chain.
Would removing parachute payments reduce Manchester City and the Top 6's dominance? No, so you're not solving the issue at all.
Between Blackburn Rovers and Leicester City winning the top flight, how many different teams have won promotion to the Premier League? 20? 30? The bottom half of the Premier League is not a closed shop, but the top is. That's where you have to start, and solve that problem.
If PNE go up, you will be complaining about the exact same things you're now, but you'll be replacing Leicester/Leeds/Southampton with other names.