Parachute Payments in English Football: Softening the Landing or Distorting the Balance?. Issue 4 (2nd October 2018)

• Record Type: Journal Article
• Authors: Wilson, Rob; Ramchandani, Girish; Plumley, Daniel
• Is Part Of: Journal of global sport management. Volume 3:Issue 4(2018)
• Page Start: 351
• Page End: 368
• Publication Date: 2018-10-02
• Subjects: Competition -- competitive balance -- professional team sports -- sport finance -- English Premier League; 竞争 -- 竞争平衡 -- 职业团队体育运动 -- 体育资金 -- 英超联赛; Sports administration -- Periodicals; Sports administration; Periodicals; 796.06
• DOI: 10.1080/24704067.2018.1441740
• Languages: English
• ISSNs: 2470-4067

Abstract

ABSTRACT: This paper examines the impact of parachute payments in English league football in relation to the competitive balance of the second tier (the Championship). League results and parachute payment fees data were collected for the 11 seasons between 2006/07 and 2016/17. Overall competitive balance was analysed as well as specific aspects of competition that are fundamental to the league—promotion, survival and relegation. Our results show that an increase in the number of clubs with parachute payments and the overall value of these payments coincides with a reduction in competitive balance in the Championship. Furthermore, clubs with parachute payments are twice as likely to be promoted to the English Premier League and considerably less likely to suffer further relegation to the third tier (League 1). The paper therefore proposes either a re-distribution of parachute payments, the abolition of them completely, or a handicap points system to improve competitive balance.