Relegation-threatened Watford face a financial headache as drop would see stars take a 50 PER CENT

Watford face a damaging financial headache if they are relegated as a number of their stars have their salaries ring-fenced, Sportsmail can reveal.

The majority of players at Vicarage Road are contractually obliged to take pay cuts of up to 50 per cent if the club are relegated to the Championship this week. But their biggest earners are not bound by those deals.

The prospect of players continuing to receive Premier League money while playing in the second tier would become a major strain on the club’s finances.

Watford face a financial headache if the club are relegated from the Premier League

A number of players are contractually obligated to see their wages halved if they drop leagues

It would almost certainly mean Watford looking to sell their highest earners — although parachute payments could make it easier to sustain the existing wage bill in the short term.

Watford are also in discussions with sacked boss Nigel Pearson over a settlement pay-out — which includes resolving the manager’s lucrative survival bonus.

Pearson’s contract entitled him to what is understood to be in the region of a seven-figure sum if he guided Watford to safety.

Relegation would almost certainly mean a number of their high earners will be sold

The Hornets looked destined for relegation when Pearson arrived seven months ago, but despite having daunting games against Manchester City and Arsenal to finish off the season, now have their fate in their own hands.

Much of that turnaround is down to Pearson and his assistant Craig Shakespeare, who impressed players and staff while in charge. Whether Pearson is legally entitled to the bonus, however, is now uncertain following his dismissal.

One of Pearson’s last acts as boss was to launch into a tirade at his players during half-time of Friday’s loss to West Ham. Pearson’s shock sacking on Sunday was effectively triggered by a bust-up with owner Gino Pozzo, who was disgruntled at the 3-1 loss — although plans were afoot to replace the 56-year-old at the end of the season.

The club recently sacked manager Nigel Pearson with just two games remaining

Pearson was calm after the final whistle as he completed his media duties — but sources claim the manager exploded at half-time as his team came in 3-0 down.

Pearson posted on social media on Monday: ‘I’ve been overwhelmed by the well-wishes I’ve received from Watford supporters and the football community. Although not able to finish the task I was brought in to achieve, I wish Watford all the best.’

Hayden Mullins will take charge of Watford’s final two games and said: ‘I’m focused on what we need from the games. Anything long term I’ve not considered.’