Premier League promoted clubs will be charged £8m

[WhiteJC]

Outrage at Premier League's demand that promoted clubs help settle its debts
Clubs coming up in next two seasons will be charged £8m
Promotion hopefuls angry at league's self-serving stance

The Premier League will charge newly promoted clubs £8m each next season and in 2021-22 to help soften the blow of broadcast revenues lost because of the Covid-19 crisis.

The development has caused bewilderment among Championship clubs with hopes of going up. They question why they must pay a penalty that relates to a Premier League season in which they have played no part and some are viewing it as akin to paying an entrance fee for an exclusive members' club.

In their opinion, the top division ought to be spreading its largesse down the leagues – as the government has demanded – and not, in effect, make a raid on upwardly mobile Football League clubs.

The Premier League has been forced to agree to rebates of £330m to broadcasters because of the failure, through no fault of its own, to deliver its product as advertised. It will not pay the money now but in instalments over next season and the one after – years two and three of a three-year broadcast deal.

Under the plan, which Championship clubs learned of last week, the three teams promoted would each pay £8m, with the three coming up in 2020-21 doing the same – adding up to £48m.

Promotion is estimated to be worth £180m to a club and the likelihood would be that the £8m would be deducted from money paid out by the league. Clubs relegated can expect parachute payments of between £75m-90m over two or three years and they too would be expected to contribute towards the broadcasting rebate. It will most likely be taken from their parachute payments.

The argument in favour of charging the promoted clubs, of making them bear a portion of the responsibility, relates to the knock-on effects of coronavirus; how it will affect not only this season but the next one and even the one after.

The next Premier League season will kick off later than planned and the league, in negotiations with broadcasters over the rebate, has essentially paid a price to control the flexibility of the start date. Therefore the promoted clubs are being told to contribute to that premium.

A further counterpoint is that promoted clubs are entering a changed landscape, a competition operating with altered costs over the next two seasons. It is a reality and, as they will belong to that competition, it is felt that they should pay.



https://www.theguardian.com/football/2020/jul/01/premier-leagues-promoted-clubs-debts?CMP=share_btn_tw

[WhiteJC]

and I just checked its not April 1st

[MikeTheCubed]

Maybe the EFL can charge an £8million entry fee to the relegated Premier League clubs and award this to the Championship's promoted clubs.

[jarv]

The premier league  have been eating from the trough for too long (hence  40 quid or more for a ticket etc, etc). Where did they put the plan for a meltdown, inevitable one day??? Oh! They dont have one????? 

[ByTheRiver]

Is this confirmed? Doesn't seem correct in any way to me.

The Premier League were happy to take record profits year-on-year (and charge ever increasing prices), they also need to shoulder any downfall. That is the risk (and the reward).

[Statto]

Is this confirmed? Doesn't seem correct in any way to me.

The Premier League were happy to take record profits year-on-year (and charge ever increasing prices), they also need to shoulder any downfall. That is the risk (and the reward).

It's in the Guardian so it must be true  086.gif

But in any case, my interpretation is:
- Each of the 20 premier league clubs will pay £8m in 2020/21 and £8m in 2021/22. £8m x 20 x 2 = £320m.
- Given the 20 premier leagues will change each year, they've said the 20 that pay should be the 20 that in the PL in each of those seasons, including newly-promoted clubs.

...and that doesn't seem totally unreasonable to me.

I suppose the alternative would me to make the current 20 PL clubs pay, even if they're relegated. So even if Villa drop into the Championship this year, they have to pay £8m next season and another £8m in 2021/22, as a legacy debt from their one season in the PL. As much as I hate Villa, that would seem a bit harsh to me.

[ByTheRiver]

Is this confirmed? Doesn't seem correct in any way to me.

The Premier League were happy to take record profits year-on-year (and charge ever increasing prices), they also need to shoulder any downfall. That is the risk (and the reward).

It's in the Guardian so it must be true  086.gif

But in any case, my interpretation is:
- Each of the 20 premier league clubs will pay £8m in 2020/21 and £8m in 2021/22. £8m x 20 x 2 = £320m.
- Given the 20 premier leagues will change each year, they've said the 20 that pay should be the 20 that in the PL in each of those seasons, including newly-promoted clubs.

...and that doesn't seem totally unreasonable to me.

I suppose the alternative would me to make the current 20 PL clubs pay, even if they're relegated. So even if Villa drop into the Championship this year, they have to pay £8m next season and another £8m in 2021/22, as a legacy debt from their one season in the PL. As much as I hate Villa, that would seem a bit harsh to me.

Hah! The Guardian bit made me smile.

But yes, I do see your point - it's not targeting the promoted clubs as such, just splitting evenly across the league and yeah, with you on disliking Villa (mostly since the final and a few idiotic fans), but that would probably be even harsher (no 100m TV money and, oh yeah, another 8m please).

In the light of their being no 'fair' way, this is probably the lesser of the two evils. Consider my viewpoint changed.

[rebel]

Football is part of the country's heritage, it belongs to the people, it's like the Premier League invented it. They have a 'monopoly' over football in this country. Some countries overseas buy the rights, but broadcast the matches 'free to view' to their viewers on terrestrial TV.   

[filham]

Share the TV bill among the big six, they would hardly notice it.

[Andy S]

This is a worry. Once they start doing this it will stay. It will be a normal cost for promotion which will prevent championship clubs from gate crashing the prem as they will not be able to afford it. It is a stealth tax that could be passed on to supporters

[The Rational Fan]

If they want to cut costs by £160m per year, then they should cap the merit bonus payments of the top ten clubs in the table to be a maximum of £20m that will save them £96m (costing 1st place team about £18m and 8th team about £5m), leaving the last ten in the table unaffected.

In addition, why are teams compensated with a big bonus every time they are on TV in the UK, when their sponsors compensate them every time they are on TV too. A 20% reduction in the UK broadcast bonus for all clubs will save another £80m per year (costing ManU about £7m and Brighton about £3m).

[The Rational Fan]

This is a worry. Once they start doing this it will stay. It will be a normal cost for promotion which will prevent championship clubs from gate crashing the prem as they will not be able to afford it. It is a stealth tax that could be passed on to supporters

If the premier league proceeds this way, they will find every team that gets promoted needs to completely rebuild their squad upon promotion and traditional teams stayed up after getting promoted by having a promoted team that forms the basis for the premier league team.