Premier teams count £200 million-plus cost of relegation
Broadcast revenue for next season’s Premier League alone will consist of about £1.5 billion, shared out based on league positions, with the bottom three clubs set to rake in close to £200 million between them.
Reduced season-ticket revenue and lower sponsorship income combined with high player salaries will also leave relegated clubs facing a “considerable hit”, according to sports lawyer Graham Shear at Berwin Leighton Paisner (BLP).
He said: “The short-term implications for a relegated team will be that season-ticket pricing will have to drop, sponsorship will be terminated or be renegotiated at a reduced rate and high wages can become a burden.”
Shear added: “Parachute payments offset these factors, but relegated clubs will still face a considerable hit.”
Relegated clubs will receive about £48 million over four years in parachute payments. Queens Park Rangers and Reading have already been relegated, with one other club set to join them.