£45 MILLION Relegation has come at very high price for the Baggies
RELEGATION from the Premier League will cost West Bromwich Albion upwards of £45 million in lost revenue.
Despite a radical upturn under caretaker manager Darren Moore, Southampton’s win at Swansea on Tuesday night condemned the Baggies to the drop. And the financial ramifications, as they face up to a first Championship campaign since 2009/10, are seismic.
The club are set to bank around £100 million in TV cash and prize money from the Premier League. That figure will virtually be halved next summer when Albion receive their first – and largest – parachute payment.
The Baggies will receive a subsidy equal to 55 per cent of their broadcast revenue this season.
That payment will fall to 40 per cent in year two and 20 per cent in year three, if Albion do not win promotion, in which case the payments would be scrapped.
Gate receipts are likely to take a hit. Revenue from merchandising, sponsorship and advertising will also slide.
Safeguards, however, are in place to soften the blow. Unlike some clubs that have bowed out of the top flight, Albion have ensured all senior first-team players will revert to ‘flexi-down’ contracts, meaning their salaries are likely to be slashed in half.
Chief executive Mark Jenkins revealed earlier this year the club had taken out an overdraft facility for the first time in over a decade, but insisted Albion were “still financially strong”.
In a statement yesterday, he praised the fans for their unwavering support and Moore for restoring some dignity on the pitch.
“This season has tested the patience and loyalty of our fans – but it is a test they have once more passed with flying colours,” Jenkins said.
“To witness the backing the team received and feel the sense of pride returning to The Hawthorns has given everyone connected with Albion renewed energy for the challenge ahead.
“I would like to add a special word of thanks to Darren Moore for the contribution he and his staff have made in restoring our pride in such difficult circumstances.”
While Albion are not under pressure to sell players, the board will inevitably want to remove the highest earners from the wage bill.
Club captain Jonny Evans, striker Salomon Rondon and £18 million record signing Nacer Chadli are likely to move on, but will be available at knock-down prices owing to release clauses in their contracts.
Craig Dawson, Jake Livermore and Jay Rodriguez will attract interest from Premier League clubs and could also depart.
On the non-playing side, such as administrative workers, stewards, caterers and programme sellers, the club does not need to “lose staff en masse”.
Albion will, however, take a close look at various departments to assess their performance, not as a consequence of relegation, but as part of a total ‘re-boot’.