Premier League clubs are meant to do one thing before they get relegated, but it almost never happens.
A football finance expert recently shared what all Premier League clubs are supposed to do before they get relegated – and it might surprise you.
On Sunday afternoon, West Ham became the third and final team to be relegated from the Premier League this season. Nuno Espirito Santo’s team won 3-0 against Leeds at the London Stadium on the last day, but they needed Tottenham to lose at home to Everton. However, Roberto De Zerbi’s team won 1-0, so West Ham couldn’t avoid the drop.
Relegation could have a huge impact on West Ham, with player sales expected to total around £150 million this summer. The Hammers were ninth in revenue among 2025/26 Premier League clubs, but now their income will drop a lot since they won’t get the usual £110 million from TV rights.
According to The Guardian, there’s some disagreement at West Ham about whether Nuno should stay. He can leave the club without the team having to pay compensation, thanks to a clause in his contract that was triggered by relegation last Sunday. This clause was added when he became manager in September.
Players, though, usually can’t just leave without consequences after relegation unless their contract ends, which is very rare. Football finance expert Rob Wilson joined BBC Radio 5 Live’s Monday Night Club and explained how relegation clauses for players are supposed to work. His insights surprised guest pundits Joe Hart and Andros Townsend.
Wilson said, “West Ham should have an advantage based on their revenue. The big question is what relegation clauses their management put into player contracts. Ideally, you want a 90% pay cut clause if you drop to the Championship.”
Mark Chapman, hosting the show, noted Townsend’s shocked reaction, joking, “Andros’ eyes nearly fell out!” Townsend could hardly believe it: “90%?”
Wilson replied, “That’s exactly why it almost never happens. But if you want to run your club responsibly, you have to cut wages by that much after relegation. Agents will always try to get the best deals for players, which is fair. The tricky part is the more you spend on transfers and wages, the better your chances of promotion.”
He added that West Ham’s £45 million parachute payment makes them three times more likely to get promoted than other Championship teams. So, in theory, they should have strong relegation clauses, manage their squad costs well, and use that extra money smartly.
Still, Wilson thinks West Ham will be busy selling players this summer, needing about £150 to £180 million to stay financially stable.
Townsend shared his own experience, saying he always had relegation clauses in his contracts, usually around 25%. The exception was at Luton Town, where he had a 50% wage cut after their relegation in 2023.
He recalled, “At Luton, there was no choice – I had to agree to a 50% cut. Honestly, I don’t think any player signs a contract with more than a 50% relegation clause. But clubs have to protect themselves just in case.”