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Original Articles

Parachute Payments in English Football: Softening the Landing or Distorting the Balance?

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Pages 351-368 | Received 19 Jun 2017, Accepted 09 Nov 2017, Published online: 06 Mar 2018
 

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.

英国足球中的降级球队补助:缓和了降级球队的财政压力还是破坏了竞争平衡性?

本文研究了在英格兰足球联赛中实行降级球队补助对英冠联赛 (英格兰第二级足球联赛) 竞争平衡的影响。文章收集了2006-07至2016-17共计 11个赛季的联赛成绩和降级球队补助金数据。本文分析了英冠联赛整体上的竞争平衡, 同时也分析了对球队升级、生存、降级都十分重要的各个具体方面。调查结果表明, 随着享受降级球队补助金的足球俱乐部数量的增加以及降级球队补助金额的增长, 英冠联赛的竞争平衡正逐步被削弱。此外, 调查结果还发现:对于享受降级补助的球队来说, 它们升级至英超联赛的几率增加了一倍, 这也就大大降低了其降级至英甲联赛 (英格兰第三级足球联赛) 的几率。因此, 本文提出重新分配降级球队补助金, 即彻底废除原有的降级球队补助方案, 或者采用差别积分制来提高竞争的平衡性。

Disclosure Statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Rob Wilson

Rob Wilson (MPhil, Sheffield Hallam University, UK) is a Principal Lecturer in Sport Business Management at Sheffield Hallam University. He has published three books; ‘Finance for sport and leisure managers: An introduction’, ‘Managing Sport Finance’ and ‘Sport Management; The Basics’; numerous chapters on finance and financial management in sport and a number of peer reviewed research articles that examine the financial health of professional team sports and leagues. Rob recently Guest Edited a Special Issue of Sport, Business and Management; An International Journal that focussed on the achievement of multiple performance objectives in professional team sport.

Girish Ramchandani

Girish Ramchandani (Ph.D., Sheffield Hallam University, UK) is a Reader in Sport Management at Sheffield Hallam University's Sport Industry Research Centre. He has published several original research articles that investigate performance issues in professional football leagues as well as multi-sport events. Girish also has a keen interest in evaluating the economic and social impacts of major sports events. In 2014, he was awarded a Ph.D. on the basis of his published works on the economic, sport development and elite performance outcomes of sports events.

Daniel Plumley

Daniel Plumley (Ph.D., Sheffield Hallam University, UK) is a Senior Lecturer in Sport Business Management at Sheffield Hallam University. His Ph.D. focuses on holistic performance measurement in professional team sports and how financial and sporting indicators impact on club performance. His research interests include performance measurement in professional team sports, the economics and finance of professional team sports and competitive balance in team sports and he has published numerous research articles in these areas.

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