Premier League clubs are supposed to do one thing before relegation that never happens

A football finance expert has revealed what all Premier League clubs are supposed to do before they get relegated - and it will surprise you.

West Ham became the third and final club to be relegated from the Premier League this season on Sunday afternoon.

Nuno Espirito Santo's side defeated Leeds 3-0 at the London Stadium on the final day, but needed Tottenham to lose at home to Everton.

However, Roberto De Zerbi's side managed a relatively dominant 1-0 win over Everton to stay in the top flight.

For West Ham, relegation could have a seismic impact across the entire club, with player sales totalling around £150 million expected this summer.

The Hammers ranked ninth among 2025/26 Premier League clubs for revenue - a figure which will dwindle significantly now the Hammers can no longer bank on £110 million a season in TV revenue.

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According to The Guardian, there is a split among the West Ham hierarchy over whether to part company with Nuno, who can leave the club either by his or West Ham's accord and without the Hammers having to pay compensation.

That clause was triggered by relegation on Sunday and was inserted into the Portuguese's contract when he was appointed as manager in September.

It is, of course, a different scenario for players, who - except in very rare circumstances - cannot simply walk out of a club for nothing after getting relegated unless their contract is expiring.

A number of West Ham players are expected to leave the club this summer (Image: Getty)

Football finance expert Rob Wilson was a guest on BBC Radio 5 Live's Monday Night Club and revealed how player relegation clauses actually work - or, at least, how they are supposed to work in practice.

And what he said left guest pundits Joe Hart and Andros Townsend both stunned.

'Exactly why it doesn't happen' - Finance expert reveals cost of relegation

"They [West Ham] should be at an advantage [compared to other clubs] based on their revenue profile, absolutely," Wilson explained.

"The big challenge, or the big unknown if you like, is what relegation clauses the executive team have built into those player contracts.

"I think I've said to you before, you really need to be putting in a 90 per cent relegation clause for a player wage when you drop into the Championship. We've heard a lot about..."

Wilson was then interrupted by presenter Mark Chapman, who said: "Sorry, Andros' eyes nearly fell out of his head at that point!

"As a man who's been at the end of that table an awful lot, he looked very, very shocked."

"90 per cent?" Townsend exclaimed.

"You know what, Andros' reaction is exactly why it doesn't happen," Wilson replied. "If you're trying to run an organisation within its means, you have to cut by 90 per cent.

"But what we also know is that the agents are going to be fishing around to get the best deals for their clients. That's exactly how it should be.

"You've also then got that bit of jeopardy, where we know that the more you spend on transfers and wages, the more likely you are to be promoted.

"In West Ham's case, the £45 million parachute payment actually makes them three times more likely to be promoted than any of the other teams in the division.

"So all things being equal, they should have relegation clauses baked into the contracts, the SCR, Squad Cost Ratio [new EFL spending rule], should be favourable. And then they've got this bit of extra revenue through the parachute payments to help them out.

"But I suspect their transfer exit door will be pretty busy this summer. They probably need to generate around £150 to £180 million in transfer revenue just to keep their heads above water."

Townsend went on to explain that he always had a relegation clause included in his contracts, which stood at around 25 per cent.

Andros Townsend played for Luton during the 2023/24 Premier League season (Image: Getty)

He said the one exception was at Luton Town, who were newly-promoted in 2023 and returned to the Championship after one season in the top flight.

"The Luton one I had was a 50 per cent wage drop," he recalled. "As a player, I don't think anyone is signing a contract with more than a 50 per cent relegation clause.

"Clubs have to put it in their contract just in case. At Luton, I didn't have a choice... there wasn't any other option, so I signed the 50 per cent."