September 18, 2021

QPR chief defends parachute payments

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Hoos says parachute payments are a vital lifeline for clubs who come down from the Premier League; QPR were relegated in 2015

By PA Media

Last Updated: 04/08/20 10:42am

Lee Hoos has defended the parachute payment system Lee Hoos has defended the parachute payment system

Lee Hoos has defended the parachute payment system

QPR chief executive Lee Hoos has defended the parachute payment system and says the salary cap he believes is necessary in the Sky Bet Championship must make allowances for teams adjusting to relegation from the Premier League.

English Football League chairman Rick Parry has criticised the payments given to clubs relegated from the top flight, describing them as “an evil which must be eradicated” and claiming they are one of the causes of wage inflation in the second tier.

A report from the Digital, Culture, Media and Sport committee published last month looking at the impact of the coronavirus pandemic on sport agreed with Parry that parachute payments “must become a thing of the past”.

QPR - who were relegated from the top-flight in 2015 - finished 13th last season QPR - who were relegated from the top-flight in 2015 - finished 13th last season

QPR – who were relegated from the top-flight in 2015 – finished 13th last season

However, QPR CEO Hoos says they are a vital lifeline for clubs who come down from the Premier League.

“When you come down from the Premier League it’s very difficult in terms of trying to make the numbers work,” he told PA Media.

1:00
Former Leeds defender Danny Mills says the parachute payment system is not being used correctly

Former Leeds defender Danny Mills says the parachute payment system is not being used correctly

“Even with pay reductions and relegation clauses in players’ contracts, you are still struggling to make ends meet.

“So if you’re looking at the number of clubs who get relegated and still suffer losses you’ll see it’s the exception to turn a profit even with a parachute payment.”

Hoos favours the introduction of a salary cap at Championship level, but insists allowances must be made for clubs coming down from the Premier League. It has been reported that an £18m cap has been proposed.

“You can’t punish people retrospectively, especially if, as the Premier League says, we don’t wish you to come up and pocket the money, we wish you to come up and add to the competition in the league.

0:52
Brighton technical director Dan Ashworth has hit back at EFL chairman Rick Parry, who has described parachute payments as ‘an evil that needs to be eradicated’

Brighton technical director Dan Ashworth has hit back at EFL chairman Rick Parry, who has described parachute payments as ‘an evil that needs to be eradicated’

“So therefore you are expected to sign players, you are expected to pay Premier League wages so that you can enhance that competition.

“From a competitive standpoint you need (promoted clubs) to be able to go out and sign players, but when they do come down the parachute payment is a soft landing.”

QPR agreed a settlement with the EFL in 2018 after an arbitration panel dismissed the club’s claims that financial fair play rules were unlawful.

0:37
Swap deals are more likely this summer as clubs get more creative due to financial uncertainty caused by the coronavirus crisis

Swap deals are more likely this summer as clubs get more creative due to financial uncertainty caused by the coronavirus crisis

Hoos and his management team have worked hard to reduce the club’s wage bill and now believes they are in a good position to work within a salary cap.

Cost controls are vital in the Championship, Hoos argues, though he thinks it is extremely unlikely a cap will be in place for the 2020-21 season.

“I would be shocked because you would have to do something that football is not very good at, which is move quickly,” he said.

“You’ve got 24 teams, and if you ask 24 teams you get 45 different opinions.

“It’s difficult to know where it is going to go. I would like to think common sense would prevail and where we have working models from other sports that we could actually implement.

“I just think that if football wants to survive, and be here in four or five years’ time in a similar format to what it is now, it has to get hold of this.”

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