Rams could be hit by parachute payments

Derby County are playing well, if sometimes they are a little too prone to concede goals, and have reasonable expectations of being promoted to the Premier League this season.   Even if they did only survive one season, they would be set up financially for years to come.

Derby County are playing well, if sometimes they are a little too prone to concede goals, and have reasonable expectations of being promoted to the Premier League this season.   Even if they did only survive one season, they would be set up financially for years to come.

However, should they remain in the Championship, enhanced parachute payments could provide some challenges for the Rams.   Derby have a justified reputation of being a well-run club, but their turnover last year was £13.5m, but a relegated club would receive £23m before a ball was played.   As recently as 2008, total parachute payments were £25m over two years (subsequently four, but now reduced to three).

One interesting aspect of the new deal between the Premier League and the Football League is that is a contractural arrangement and ‘solidarity payments’ to lower leagues are no longer a gift.   They are also tied to the amount the Premier League receives in broadcasting revenues.