Scotchegg
Well-known member
- Joined
- 14 Dec 2017
- Messages
- 13,868
They've agreed to pay £40M to Short. Where they get the money from is their concern: perhaps they are selling other assets; borrowing; have other investors; or are hoping to cut costs and increase revenues enough that they can use the parachute payments instead. Short is just making sure he gets it by ringfencing the parachute payments.
It's not that different to what Eales has done with the transfer fees for players sold or on the books when he sold to Tiger.
Except conceptually, I think parachute payments are to give an income for future seasons after relegation from EPL where clubs naturally have a higher player wage bill and other costs that don't go down immediately, whereas tv money will go down and attendances too in general.
Whereas transfer fees due are simply a delayed payment for a past transaction.
You are right that the SD and Tiger deals are basically the same with deferred payments linked to known future income, or other investments. However I would imagine that Tiger could cover the operating costs of Oxford a lot longer than SD can cover Sunderlands without significant additional funding. Without promotion and/or Satori this could go badly pretty soon!