Definition of parachute payment in English:

parachute payment

noun

  • (in the UK) a sum of money given to a sports club relegated from a league, as compensation for the loss of revenue attendant on relegation.

    ‘Dundee would get a parachute payment of £250,000 from the SPL if they went down’
    • ‘A parachute payment will assist Salford with the daily running of the club in order to see various infrastructures remain.’
    • ‘He has always maintained the issue of compensation or 'parachute payments' for the clubs relegated from Division Three remained a stumbling block.’
    • ‘The FA, who will be asked to pay the parachute payment for the extra relegated club – around £175,000 a year – did not wish to comment.’
    • ‘Parachute payments, in my opinion, would not make any difference.’
    • ‘City will lose the parachute payment given to relegated Football League clubs during their first season in the Conference.’
    • ‘West Ham are absolutely desperate to get back in the Premiership, especially seeing as this is the season where they receive the last instalment of the 'parachute payment' that comes with relegation.’
    • ‘Parachute payments will be made to the two relegated clubs for one season.’
    • ‘Equally, parachute payments give relegated Premier League clubs more resources than their Division One rivals and a better chance of being promoted.’
    • ‘A cash parachute payment from Super League will soften the pain of relegation and help the cause but Reds' morale is at its lowest ebb.’
    • ‘The two promoted teams from the Conference will receive a £35,000 payment, with relegated sides receiving parachute payments.’