' The cost of Premier League relegation '

http://www.footballeconomy.com/content/ ... miership-0

Monday 28th April 2014.

It remains to be seen which three clubs will be relegated from the Premier League this season, but they can expect to pay a high price. Research by Nick Harris shows that the three demoted clubs can expect to see their income fall by at least £20m next season. Crowds will fall, typically by more than 4,000 per game. Only five of the 27 relegated teams from the past nine seasons have gone straight back up.

The research shows that the average relegated club's income fell £19.5m, year on year, immediately upon relegation, from £50.3m to £30.8m. Recent times have seen bigger falls with Bolton, Blackburn and Wolves all taking hits of nearly £30m after dropping in 2012, and Newcastle and West Ham almost £30m each after relegation in 2009 and 2011 respectively.

Gates also fall by an average of 4,365 per game in the first season. Blackburn, Middlesbrough, Birmingham and Leeds saw attendances drop more than 7,000. Paradoxically, Norwich saw a 598 increase in the average gate after relegation in 2004-5.

Only one team of the last nine relegated from the Premier League has returned: West Ham. Just 15 clubs relegated in the past decade have managed to return and it took Leicester 10 years. Those that have made it took almost four years on average. Nine of the 30 relegated clubs fell to League One or lower. One of the reasons is that quality players leave and average players stay.

Bigger parachute payments do not compensate for the loss of the benefits of the lucrative TV contracts. The ability to attract sponsors and commercial partners is damaged.

About £100 million with tv money

An interesting set of stats there. It goes to show how difficult it will be next year, should we be relegated. The club will be more divided and devisive than ever before. If we go with OGS in charge, we are taking a punt on an inexperienced manager, who has fo far shown little evidence that he has the skills needed to be succesful. On the face of it, you wouldn't bet against the perfect storm of a further relegation or at least a struggle at the bottom rather than at the top of the championship. Take Wigan for example, a really solidly run club, with a loved owner and Chairman, some decent players and on the face of it, a very decent if inexperienced manager, yet they haven't ripped up any trees down there.

viewtopic.php?f=2&t=140311

About £100 million with tv money

Hmmm more like £85m - £90m but yes it is a heffty drop.

Income next year with parachute payment will be around £37m

The cub needs to work tirelessly to get all that Premier League outgoings back to championship level. Not easy unless the correct clauses have been used in contracts.