Football finance expert Kieran Maguire has claimed to Football Insider that West Bromwich Albion could have a lot of unhappy players on their hands if compulsory relegation clauses are written into their contracts.
This claim comes in the wake of Football League chairman Rick Parry demanding that there needs to be structural change in the English game, as per a recent report by the Telegraph.
Parry has stated his belief that the Premier League must surrender 25 percent of it’s income to the EFL in order for that money to be filtered through the lower divisions, thus improving the financial health of many of the smaller clubs.
Now Maguire has provided his opinion on this demand by Parry, by stating that releagtion clauses could become compulsory and affect the likes of West Brom:
“Parachute payments were introduced to reduce the risk of clubs going into administration following relegation.
“The data proves that the wage bills of clubs relegated from the Premier League fall on average by 40 percent in the first season.
“If you abolish that, you’re going to need to cut wages by double that figure. You’re going to have a lot of unhappy players.
“If West Brom get promoted, they will struggle to sign players on the basis of relegation clauses in contracts.”
Relegation clauses allow clubs to cut player wages in the event of them being relegated, which is something that most players are sure to be strongly against.
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This term has been around for many years in the English game but is not currently compulsory.
This sort of thing is sure to be a worry for the likes of West Brom, who are currently well in the promotion race in the Sky Bet Championship.
Compulsory releagtion clauses would put them at great risk of losing their best players in the event of them being relegated again further down the line.
At the same time, this move by the Football League to make the top flight give up a good portion of it’s money could well be beneficial in the long run.
This debate will certainly strike a fine balance and it will be interesting to see if Parry can get what he wants moving forwards.