Should Watford’s Premier League stay last just one season the Hornets will find themselves among the first batch of clubs to only receive two years’ worth of parachute payments, rather than the current four.

The current parachute payment system is being overhauled. At present, teams relegated from the top flight back to the Championship can expect to receive at least £64 million spread across four years – assuming they do not win promotion once more in that period.

That means Hull City, Queens Park Rangers and Burnley - all relegated last season - will still be entitled to payments of £24 million in year one, £19.3 million in year two and £9.6 million in years three and four.

However, from the 2016/17 season it has been announced clubs who are relegated from the top tier of English football will instead benefit from a maximum of three years’ worth of parachute payments.

Sides who drop back into the Football League after just one season in the Premier League will, however, only obtain parachute payments for two years instead.

It is anticipated the value of the parachute payments, introduced to soften the blow of losing top-flight income, will rise sharply when the new Premier League broadcast rights deal kicks in for the 2016/17 season.

The latest domestic broadcast agreement is valued at £5.1 billion - a rise of 70 per cent on the value of the previous deal, struck in 2012.

Therefore, from the 2016/17 season onwards, clubs relegated after just one year in the Premier League will bank 55 per cent of the equal share of broadcast revenue paid to clubs in their first year back in the Championship.

In year two they will net 45 per cent and in year three - assuming they qualify - 20 per cent.