Under Premier League rules, clubs are entitled to three years of Parachute Payments when they are relegated to the Championship, although this is restricted to two years if they had previously been promoted and were immediately relegated.
The parachute payments are calculated as being 55%, 45% and 20% respectively of the equal share elements of the Premier League distribution to its member clubs.
This works out as £48m, £39m and £17m for the relegated clubs over a three year period.
If a relegated club is then immediately promoted, then the parachute payments it was due to receive are retained by the Premier League and given to its own clubs.
Burnley and Leeds United have already been promoted to the Premier League which saves the Premier League £39m and £17m in 2025/26.
If Sheffield United are promoted in the playoffs at the weekend this will be a further £39m.
This could result in a total of £95 million coming back to the Premier League.
Leicester, Ipswich and Southampton were relegated in 2024/25 having been promoted the previous season.
This means that the Premier League will definitely not have to pay parachute payments in the third year, resulting in a further benefit to Premier League clubs of £51 million (3 x £17m).
This could take the parachute payments benefit to existing PL clubs to £146 million.
It’s the most valuable match in world football not just for the two clubs competing at Wembley, who can be £190m better off for winning. That works out as £9.5m for each of the Albion and the other nineteen PL clubs.
TL
R
The parachute payments are calculated as being 55%, 45% and 20% respectively of the equal share elements of the Premier League distribution to its member clubs.
This works out as £48m, £39m and £17m for the relegated clubs over a three year period.
If a relegated club is then immediately promoted, then the parachute payments it was due to receive are retained by the Premier League and given to its own clubs.
Burnley and Leeds United have already been promoted to the Premier League which saves the Premier League £39m and £17m in 2025/26.
If Sheffield United are promoted in the playoffs at the weekend this will be a further £39m.
This could result in a total of £95 million coming back to the Premier League.
Leicester, Ipswich and Southampton were relegated in 2024/25 having been promoted the previous season.
This means that the Premier League will definitely not have to pay parachute payments in the third year, resulting in a further benefit to Premier League clubs of £51 million (3 x £17m).
This could take the parachute payments benefit to existing PL clubs to £146 million.
It’s the most valuable match in world football not just for the two clubs competing at Wembley, who can be £190m better off for winning. That works out as £9.5m for each of the Albion and the other nineteen PL clubs.
TL
R
