Exclusive: Ryan calls for League to ease financial pain after drop

[roverstillidie91]

DONCASTER Rovers chairman John Ryan last night called on the Football League to introduce parachute payments for clubs relegated from the Championship.

The South Yorkshire outfit have endured a difficult summer after seeing income slashed ahead of their first season back in League One since 2008.Ryan estimates that Rovers have had in the region of £6m wiped off their revenue streams, much of it caused by the vastly reduced central payments teams in the third tier receive from the League.The Doncaster chief, whose club yesterday signed Leeds United striker Paynter, last night told the Yorkshire Post: “The difference between being in the Championship and League One is huge.“I would estimate we will lose in the region of £6m this year in income compared to what we could have expected last season.“The drop in television money and sponsorship is the biggest. Championship clubs receive 80 per cent, whereas the share for those in League One stands at 12 per cent.“That is a big difference, by any standards. We have certainly felt the pinch this summer and that is why I believe the League should look at some form of parachute payment for relegated clubs.“Otherwise, the drop is just too big. It isn’t so much of a problem between Leagues One and Two because the share is quite similar at 12 and eight per cent.“But to experience as large an amount as we have had wiped off makes life difficult.”Parachute payments of £48m spread over four years are paid by the Premier League to clubs relegated to the Championship.

Ryan concedes any funds handed to teams dropping down to the third tier would represent a fraction of that figure.However, the Rovers chairman believes any payment would be just as invaluable in terms of helping a club cope with the inevitable slump in income.He said: “Our wage bill last season was £9m but, obviously, it will be nothing like that this time. But, even so, it does make things difficult for us.”Asked if Rovers’ squad had relegation clauses written into their contracts, Ryan replied: “Yes, all but one player did have a clause.“It meant a 25 per cent reduction in their wages but, again, even that only goes so far when you are looking at a drop in your central payment from the Football League that is as big as it is.“I would like the League to look at possibly changing that so the drop is more palatable. I realise some people will look at my comments and say, ‘Well you weren’t complaining in the Championship’.“Okay, that’s fair enough. But I do believe a more equal split is required in future if clubs are not to get into trouble.

”Meanwhile, Leeds striker Paynter has become Rovers’ seventh signing of the summer.The 28-year-old was identified by manager Dean Saunders as a key target as he looks to build a squad capable of challenging for promotion.Rovers president Trevor Milton has stepped down after eight years in the role, while former Wales Under-21 manager Brian Flynn is to join Doncaster as chief scout.

[Mr1Croft]

While I see where he is coming from, a parachute payment from the Championship would just increase the ongoing problem that makes the Championship and Premiership clubs miles apart in their respective league. Because of the distribution in money Norwich will never challenge for the Premiership title in the same way that we could never challenge for the Championship title. If relegated Championship clubs receive payments then it would just make the task of small clubs being successful even harder.

[big fat yorkshire pudding]

It should be up to clubs to be more financially prudent IMO.  The football league should automatically make contracts have relegation wage reduction clauses as a matter of legislation, IE a 40% drop in wages becomes mandatory at that level, may be less so as the drop decreases, they could benchmark it on turnover reduction estimates.

[glosterred]

I think this is all part of levelling the playing field for the smaller clubs - if there is no parachute payment for the relegation from the Championship to L1 then shouldn't be payments from PL to the Championship.

COYR

[silent majority]

I think this is all part of levelling the playing field for the smaller clubs - if there is no parachute payment for the relegation from the Championship to L1 then shouldn't be payments from PL to the Championship.

COYR

But its the PL's money all of it, so they can do what they like. That's why the drop from the Championship to L1 is so dramatic, it has to come out of that very small pot that the FL get from the PL.

[The Beast]

80, 12, 8 is ridiculous but its the way of the world, the rich have the power, they make the rules so they become richer, there's nothing you can do about it. You can either cut your cloth or play shit or bust! I don't think us getting a parachute payment would be fair on the rest of league 1 and I definitely wouldn't like to see Pompey receive one. 60,25,15 would be fairer but then the gulf between Prem and Championship would become bigger, the top Championship clubs would then take their ball home and become Premier League 2 and then phase out relegation, you cant win!

[graingrover]

There should be a work contract per League  If the club be relegated there would be no more liability to pay wages . Clubs would be free and players too . A bit like DRFC and Diouff.

[DonnyBazR0ver]

The whole notion of parachute payments is a nonsense anyway. It just give clubs more licence to be irresponsible with their spending and not being prudent enough with their contracts, and not wise enough to write in relegation clauses (Although fair play to Blackpool who did).

We still see irresponsible and disproportionate spending now, even from clubs like West Ham would you would think have learned from the recent past.   

[bradford exile]

Apart from bankers..is football the only other proffession that gets rewarded for failure????

Regards

Ray.............