Parachute payments explained and what Wolves could receive | OneFootball

Wolves are braced for Championship football after relegation was confirmed on Monday, with parachute payments to help soften the financial hit.

According to ExpressAndStar.com, West Ham’s draw with Crystal Palace sealed the drop, and long-running preparations will now accelerate.

Parachute payments are solidarity sums from the Premier League for up to three years to help clubs adjust to reduced broadcast revenue in the Championship. The mechanism has long been contentious within the pyramid, with critics arguing it gives relegated sides an advantage and can encourage rivals to overspend.

The system follows a sliding scale. In the first year after relegation, a club receives around 55 per cent of one equal share of Premier League broadcasting money, then 45 per cent in year two, and 20 per cent in year three.

Payments stop immediately if a club is promoted, whether after one season or two. In recent years, relegated sides have received about £49m in year one, about £40m in year two and about £17m in year three if they have not gone up.

Source: ExpressAndStar.com