HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS?

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HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS?

Postby Sven » Wed May 08, 2019 1:15 pm

How much Cardiff City will actually get in parachute payments after relegation and how they are worked out
By Dean Rudge

The Bluebirds' spell in the Premier League will earn them north of £100million in broadcasting revenues this season


After taking their survival battle to the penultimate game of the season, Cardiff City's relegation to the Championship was confirmed by the club's 3-2 defeat to Crystal Palace at the weekend.

A year after they pipped Fulham to second place in the Championship and secured automatic promotion, the Bluebirds are heading back to England’s second tier, joining Huddersfield Town, as well as Fulham themselves.


As the drop continues to sink in, attention will turn to preparing for the changes to come next season - and one of the biggest changes is the stark difference in financial reward between the two leagues.

As in 2014, Cardiff's drop has been cemented after a single season in the top flight, although the Bluebirds endured a far more respectable and united season this time around.

We've looked at how much money Cardiff will have brought in this season, and how much change they are set to see.


How much will Cardiff have earned this season?

A spell in the top flight will earn Cardiff north of £100million in broadcasting revenues this season, thanks to the lucrative nature of Premier League broadcasting rights.

West Bromwich Albion, for example, were awarded £102million in "media related income" last season for their 18th-place finish.

This season's income, for Cardiff City, will be a huge increase on last season, when the club earned £21.4million from centralised broadcasting and commercial distributions.

In winning promotion to the Premier League, Cardiff were among the most profligate clubs in the division, racking up an operating loss of £34million on revenues of £34.8million, although this figure included £23.2million worth of promotion bonuses.


How do the parachute payments work and how much will Cardiff get?

The payments are calculated based on the TV and prize money from the season in which the club are relegated: with 55 per cent of that figure handed out in the first year in the Championship, before falling to 45 per cent and 20 per cent in years two and three respectively.

However, a sticking point for Cardiff is that clubs which only spend single seasons in the Premier League before relegation are not eligible to receive the third instalment. Clubs that are promoted back to the Premier League during the parachute payment period, then they no longer receive the payments.

But, based on that formula, Cardiff can expect to receive more than £40million in parachute payments next season, which will help in cushioning the blow of relegation.


Then, should Cardiff fail to win promotion in 2019/20, the second and final parachute payment would be in the region of £35million.


Cardiff can take the case of Middlesbrough for how their finances should look next season.

Relegated in 2016/17, the club saw broadcasting revenues plummet, from £100.6million in their relegation season to £46.3million last time out.
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HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS?

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Re: HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS

Postby Sven » Wed May 08, 2019 1:21 pm

In all reality, Cardiff City FC (and Vincent Tan in particular) should be immensely pleased with these figures after their surprise promotion to the Premier League last season

In all reality, it must surely have been seen as a massive bonus and will have greatly speeded up the reduction of the already well-managed reduction debt within the club

£100m+ for this season and a guaranteed average of £40m+ for the next two season (regardless of further promotion) must surely loo like 'manna from heaven' to the club's benefactors and in the main all down to the championship expertise of one Mr Neil Warnock, Esq.

It puts the club in a great position going forward and (hopefully) we can see another positive Championship season ahead in 201920
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Re: HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS

Postby Bluebird Warrior » Wed May 08, 2019 1:44 pm

Wonder what the transfer budget will be then?
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Re: HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS

Postby Sven » Wed May 08, 2019 2:06 pm

Bluebird Warrior wrote:Wonder what the transfer budget will be then?

I'm sure it won't be high but hopefully the 'Transfer Committee' will provide what is needed to mount a serious challenge

I don't actually think we need too much player-wise but certainly a new battling midfielder and a couple of strikers who know where the goal is
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Re: HOW MUCH WILL CITY GET IN PARACHUTE PAYMENTS

Postby Welsh Giants » Wed May 08, 2019 3:58 pm

This is encouraging reading. With that money available no excuses to not sign a top quality goalscorer to fire us to promotion. Other positions need strengthening too but least we can be more prudent with spending there and also know we have money to invest if needed
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