“Parachute payments”

Definition

Money the Premier League pays out to clubs after they’re relegated, easing the drop from Premier League television revenue to Championship budgets. It phases out over three years so clubs aren’t stuck paying Premier League wages on Championship income.

Origin

Introduced for the 2006-07 season after a string of relegated clubs nearly collapsed financially trying to keep wage bills built for Premier League money. The payments are meant to soften that landing, hence the name.

Used in a sentence

“Wolves, West Ham, and Burnley are all cushioned by parachute payments this season, which is exactly why Wrexham’s climb back to the Premier League will feel a little steeper.”