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Parachute payments - a question


Fitzhugh Fella
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Does anyone know the answer to this.

 

If a club get relegated from the Prem they get a 2-year parachute payment but if they then go straight back up (re-promotion :) ) - do they forfeit that 2nd year payment?

 

Yes Duncan, if they go back up the parachute payment stops. In fact last year or may be the year before there were calls for the money saved by the premier be distributed between the lower leagues. I think some was.

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Which makes my point that collectively we could run SFC better than those currently or previously in charge!!!!

 

OK, perhaps we haven't got that much money invested compared to them...! My shares are worth a couple of Frothy Lattes...

 

At the time that thought crossed my mind too, but there again we never looked likely to go up in our first year in the CCC so I guess the question was never posed.

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Thanks Ron - believe it or not neither Leon or LM could answer this

 

Actually, that's very believable and judging by your comments earlier today about all in or all out then based on this as an example of 'knowing the business' we would be better off with all of them out if there will be destruction anyway within 30 secs. How is a very big question though?

 

Does Leon Crouch do anything independently of LM where the club are concerned?

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Actually, that's very believable and judging by your comments earlier today about all in or all out then based on this as an example of 'knowing the business' we would be better off with all of them out if there will be destruction anyway within 30 secs. How is a very big question though?

 

Does Leon Crouch do anything independently of LM where the club are concerned?

 

A usual snipe at Saints most sucessful manager ever by the Skate troll.

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Does Leon Crouch do anything independently of LM where the club are concerned?

 

It would be nice if Rupes would ask the opinion of LM.

 

If he had we might not have been saddled with the "Revolutionary Dutch coaching Concept". If he was to do so now, perhaps we would be able to escape relegation as we did last year.

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The main thing this shows is that there is a vast difference between being a board member, or even chairman, and being a CEO involved in the day-to-day running of the club where this sort of thing has to be (and would be) known.

 

Does that mean we can't get rid of Lowe because he's got 10 years knowledge?

 

How did you feel when Rupert took over then?

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Does that mean we can't get rid of Lowe because he's got 10 years knowledge?

 

I'm not sure whether you really didn't understand my point or not, I'll assume not so I'll try to rephrase it. When there is someone better than Lowe then it makes sense to replace him - pretty much like we aim to improve our playing squad. "Better" constitutes 2 current requirements - firstly, that person has to be affordable; secondly, that person has to be competent enough to run the club.

 

On the first point, our current financial predicament means that we can't afford to have 5 full time executive Directors running the club. AFAIA Cowen works part-time and is paid just £25k pa, and RL also works part-time and I believe that's unpaid (at least I've not heard anyone dispute this when previously stated, but happy to be corrected). Can we find another experienced CEO who wants to work part-time for £25k pa? I suggest not. Can we afford to return to paying a full-time CEO package (£150k+) at the present time? Again, I suggest not *if* we have the choice of a much cheaper option.

 

On the second point, contrary to popular belief during the Go Wilde era, you can't just pluck any old former-CEO from the unemployment line - Hone, Oldknow, Dulieu and Hoos scored 0 out of 4 on that front and their combined cost was probably around 20 times what we are having to pay at the moment (that still makes me shudder). As for getting an inexperienced CEO in, I don't think that's a bad idea but it requires a significant hand-over period and this really is not the time to start on that sort of path.

 

How did you feel when Rupert took over then?

 

The point back then was that we needed someone with City and financial experience to deal with the stadium loans, financing, rights issue, etc - in that respect he was ideal. Conversely, a good time to have moved away to a less financial-oriented CEO was around 2003/2004 when finances were stable... but then it's difficult to see the point in doing that at that time and you could argue why rock the boat etc. And coming full circle, I think in our current financial predicament that Lowe is probably one of the best people to be tasked with sorting out the financial mess the club is in - that's not necessarily the same thing as being the best person to take the club forward in the medium to long term (though IMO he's better than the other major shareholders), but it's what we need in the short term.

 

Back to the original subject, I wonder why they wanted to know?

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I'm not sure whether you really didn't understand my point or not, I'll assume not so I'll try to rephrase it. When there is someone better than Lowe then it makes sense to replace him - pretty much like we aim to improve our playing squad. "Better" constitutes 2 current requirements - firstly, that person has to be affordable; secondly, that person has to be competent enough to run the club.

 

On the first point, our current financial predicament means that we can't afford to have 5 full time executive Directors running the club. AFAIA Cowen works part-time and is paid just £25k pa, and RL also works part-time and I believe that's unpaid (at least I've not heard anyone dispute this when previously stated, but happy to be corrected). Can we find another experienced CEO who wants to work part-time for £25k pa? I suggest not. Can we afford to return to paying a full-time CEO package (£150k+) at the present time? Again, I suggest not *if* we have the choice of a much cheaper option.

 

On the second point, contrary to popular belief during the Go Wilde era, you can't just pluck any old former-CEO from the unemployment line - Hone, Oldknow, Dulieu and Hoos scored 0 out of 4 on that front and their combined cost was probably around 20 times what we are having to pay at the moment (that still makes me shudder). As for getting an inexperienced CEO in, I don't think that's a bad idea but it requires a significant hand-over period and this really is not the time to start on that sort of path.

 

 

 

The point back then was that we needed someone with City and financial experience to deal with the stadium loans, financing, rights issue, etc - in that respect he was ideal. Conversely, a good time to have moved away to a less financial-oriented CEO was around 2003/2004 when finances were stable... but then it's difficult to see the point in doing that at that time and you could argue why rock the boat etc. And coming full circle, I think in our current financial predicament that Lowe is probably one of the best people to be tasked with sorting out the financial mess the club is in - that's not necessarily the same thing as being the best person to take the club forward in the medium to long term (though IMO he's better than the other major shareholders), but it's what we need in the short term.

 

Back to the original subject, I wonder why they wanted to know?

 

 

They didn't - it was me who wanted to know and I assumed they would be able to answer my question, but like I said, they couldn't. Your earlier point about the CEO would have known, is a valid one.

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Because it's none of your business Matt. Perhaps I was too busy fixing printers at Bourton On The Water?

 

Ah, ha......so, both Bourton and Hull were flooded in July 2007, resulting in both SaintLee and Jonah disappearing off the face of the Earth for weeks on end....

 

I knew all these takeover clues would come together in one simple explanation eventually.

 

Trousers dear boy, you're talents are seriously wasted here.

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Well i was wondering about a similar question which may be more pertinant to Saints....

Say Reading get promoted this year and come straight back down. Do they still get 2 years worth of parachute payments? Or does the parachut payments have to be "earnt" by service in the Prem, so for example they have to be in the Prem for 2 years before they get the full 2 year parachut payment. So a club that goes straight back down may only get one year or 2 years at a reduced rate???? I dunno.

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Well i was wondering about a similar question which may be more pertinant to Saints....

Say Reading get promoted this year and come straight back down. Do they still get 2 years worth of parachute payments? Or does the parachut payments have to be "earnt" by service in the Prem, so for example they have to be in the Prem for 2 years before they get the full 2 year parachut payment. So a club that goes straight back down may only get one year or 2 years at a reduced rate???? I dunno.

 

As I understand it, there are two parachutes just for having been in the Premiership. For many clubs it would be financially impossible to get up and stay up in one promotion. Rather than spending every penny to try and stay up (Derby?) another way is to get promoted and then use the money wisely to make sure that the club is in a healthier state than the other clubs in the Championship. It may take two or three promotions to secure a firm foothold in the Premiership.

 

There's an interesting article about clubs that bounce straight back:

 

http://www.guardian.co.uk/football/2007/aug/08/sport.comment1

 

If one bounces back then the football League get the saved parachute. If 2 bounce back the the Premier League keeps the second saved payment, but if all three bounce back then the third saved payment is also distributed lower down.

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