West Brom news: Kieran Maguire demands ‘radical’ action amid £30m reveal
Major changes are needed to address the distribution of wealth in the EFL – but taking parachute payments off the likes of West Brom is not it.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about recent research published by Sheffield Hallam University.
The study found that clubs receiving parachute payments are three times as likely to be promoted, as relayed by the Daily Mail on Monday (28 March).
The average revenue of clubs with parachute payments was £53m compared to £14.5m at other second-tier clubs.
The average yearly value of parachute payments themselves meanwhile was £29.5m, over twice the figure it stood at 15 years ago.
West Brom are in their first year of parachute payments following their relegation from the Premier League in 2020-21.
Maguire claims that he would not scrap the system and instead address financial inequality in the EFL through other “radical” changes.
“I would do some pretty radical stuff,” he told Football Insider‘s Adam Williams.
“I would share matchday receipts and merchandise income, as they do in the NFL.
“In that system, 60 per cent would go to the club and the rest would be pooled.
“I would also say there is a case for a Premier League 2. Why do clubs overspend in the Championship? To get the extra money.
“Why do clubs overspend in the bottom half of the Premier League? Because they’re worried that they’re going to be down £80m if they get relegated.
“You need a parachute because if you jump out of a high building, you’re going to hit the ground.
“If you reduce the side of the cliff edge, you don’t need the parachute.
“Parachute payments are the inelegant solution to the problem of distribution of money.
“But getting rid of them doesn’t address that problem. It just means clubs are more likely to go into administration.”
West Brom extended their accounting date by three months on Thursday (31 March), meaning we may not see their financial results until June.
The Baggies are currently 12th in the Championship.
In other news, major Sam Johnstone update from West Brom after plug pulled on loan deal.