Leicester City set for cash injection after £83m windfall
Leicester City are set to receive a cash boost from the £83 million the Premier League are going to save on parachute payments.
Because Norwich City and Watford have been promoted at the first time of asking, the top flight will save on payments it would have to make to the pair after relegation last season.
That figure, report the Mirror via football finance expert Kieran Maguire, is set to be around £83m and it could even grow if AFC Bournemouth make it a full set by promotion through the play-offs.
Bournemouth, Watford and Norwich finished last season in 18th, 19th and 20th respectively but have not suffered from any relegation hangover.
And that is set to benefit City, who will be granted a portion of the cash saved on payments to the relegated teams who have returned to the Premier League.
It will come in handy for top flight clubs given their revenue streams continue to be hit by the coronavirus pandemic.
Matches have been played behind closed doors for almost a year, bar a few games in Liverpool and the south.
Parachute payments are there to help clubs adjust to relegation, but they are not universally backed.
EFL chairman Rick Parry hit out at the concept during a session of the House of Commons digital, culture, media and sport committee in May last year.
“We need a rescue package but we also need to address the long term; the two need to go hand in hand,” he said. “We face a £200m shortfall at the end of September and we need a rescue but we can’t just go from bailout to bailout.
“We need a complete reset and we need to look at the redistribution of revenues. Parachute payments are an evil that needs to be eradicated.
“We have six clubs in the Championship receiving parachute payments which means on average they get £40m per club; the other 18 get £4.5m each. So they’re then struggling to try to keep up. Lower down (in Leagues One and Two) solidarity money is welcome but becomes very small. I don’t like to call it a bailout, I call it a restructuring and a rethinking, but it’s overdue and it’s necessary.”