Friends of mine who are West Ham fans have feared that the club would be relegated for some time and now it has happened. Although the owners have taken something of a ‘not me guv’ stance about the course of events, they must take some responsibility.
Friends of mine who are West Ham fans have feared that the club would be relegated for some time and now it has happened. Although the owners have taken something of a ‘not me guv’ stance about the course of events, they must take some responsibility.
More than half of West Ham’s 2009-10 turnover of £71.7m came from Premier League revenue distributions. The minimum £40m of television and central sponsorship income for the bottom club (up from £31.3 last year) this season will be exchanged for a £16m parachute payment season next. Gate receipts, commercial and merchandising income, worth £33.1m in the past financial year, will also drop. Matchday, commercial and sponsorship revenues could fall by as much as £20m.
Blackpool’s fate remains uncertain, but if they are relegated, they can comfort themselves with the fact that they have spent relatively little money in the Premiership. They will benefit from increased parachute payments of £48m spread over four seasons (£16m, £16m, £8m, £8m).
Indeed, there have been complaints from Championship clubs that the enhanced parachute payments will create a two-tier competition, making it very difficult to repeat feats like that of Norwich this year with recently relegated clubs having an advantage. However, the case of West Ham suggests that the picture may be more complex.