In the final segment of our examination of the history and impact of relegation from the Premier League, we focus on the financial difficulties of relegated clubs.
Along with money lost from television deals, teams also lose significant money from lack of sponsorship income and a historically lowered attendance. To combat this, teams are given parachute payments.
Every year, teams receive payments based on how many years they have been a victim of relegation. The payments gets smaller each year and stay at a fixed level after year 4 of relegation.
In total, teams that have been relegated average a loss of $71,000,000 the year after relegation. Nine clubs have actually gone bankrupt within 5 years of being relegated.