Kieran Maguire: West Brom could be set for £75m+ blow after what the Premier League told me
A reconfiguration of how £75million-plus parachute payments are calculated could be bad news for relegation-threatened West Brom.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively with the Premier League yet to specify how much last season’s relegated teams received in parachute fees.
That in turn makes it difficult to predict how much this campaign’s bottom three will pocket in 2020-21.
The spreadsheet expert predicts that the pot could shrink because of a restructuring of how payments are calculated.
He told Football Insider correspondent Adam Williams: “They told me it’s due to the pandemic but there’s also the impact of the fact that last season was the first where the overseas money is now based partially on where you finish in the table.
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“So does this mean that parachute payments are going to fall because there’s going to be more money distributed depending on where you finish in the table and how many times you appear on TV and less based on the flat fee?
“In theory, under normal circumstances, you would expect the parachute payments to be about £41m in the first year, then £34m or £35m in year two.
“But I think that could be reduced, partly due to broadcast rebates which could knock off 10 per cent but also due to the reconfiguration of the money.
“Either way, teams going down in the pandemic era are going to be hurt because the TV money is down overall. So the amount that is distributed equally is down. They could be hit hard.”
Sam Allardyce‘s side are eight points from safety with seven matches to play.
But impressive victories over Chelsea and Southampton have given the Baggies hope that they can pull off an unlikely escape.