That would be my understanding. They would be paying PL wages for a season so would start again if they went down.
Edit = or maybe not
http://www.danielgeey.com/premier-league-parachute-payments-explained/
How is it paid?
Clubs get the following amounts over the three seasons.
In season one, 2016-17, Villa would get £40 million
In season two, 2017-18, Villa would get £33 million
In season three, 2018-19, Villa would get £14 million.
No double dipping