Relegation described as biggest financial jeopardy in soccer
Crystal Palace co-owner and chairman Steve Parish recently spoke on the financial repercussions surrounding relegation from the Premier League. The English businessman helped purchase the south London club in the summer of 2010.
Palace was in the second-tiered Championship at the time after relegation from the top flight in 2005. The club gained promotion back to the Premier League in 2013, where they have remained a mid-table team.
Palace chairman outlines financial hit with relegation
Parish has stated that dropping down to the Championship is one of the biggest financial dangers in the sport. “Relegation from the Premier League is probably the biggest financial jeopardy in world football,” proclaimed Parish.
“If you look at (Crystal Palace’s) turnover in the Premier League, it’s in the region of £175 million ($218 million). First season in the Championship it would be about £70 million. There’s no amount of salary cuts for players you could bake in to cover that loss.”
“In the third season it’s worse and by the fourth season (without a parachute payment) you’re down to about £20 million. So, in three years you have to come down from £175 million to £20 million.”
Everton could be in serious trouble if relegated
While relegation can crush any club, Everton could particularly be in significant trouble if they were to drop to the Championship. The Toffees have recorded combined losses over the last five years of around $520 million. Their most recent financial records showed a loss of about $55 million just for last year alone. Everton owners are currently financing a new $625 million stadium, as well.
The Merseyside club also may face sanctions by the Premier League for breaching Financial Fair Play rules. An independent organization is currently investigating Everton’s recent financial records. A final decision on the ruling may be expected before the current campaign ends.
Everton are currently in the Premier League relegation zone at the moment. They sit 18th in the table, just one point away from safety. The Toffees do, however, have an extra game in hand compared to the teams just ahead of them. Everton next face Newcastle on Thursday.
PHOTO: IMAGO / News Images