The Premier League will stick to its guns over proposed higher parachute payments for relegated clubs despite opposition from Football League clubs.
The 72 Football League clubs met in Derby today and agreed to push for a better deal over solidarity payments – with some chairmen claiming that boosting parachute payments from STG16 million ($A23.6 million) to STG23 million for the first year after relegation will give relegated clubs an unfair advantage.
As far as the Premier League is concerned, the level of parachute payments is non-negotiable.
A Premier League spokesman said: “Parachute payments are based on a formula that is part of the Premier League’s constitution and have proven a necessary mechanism for clubs both coming up and down over the years.
“There is no evidence to suggest they prevent non-parachute payment receiving clubs getting promoted from the Championship – the contrary in fact. Over the past 15 seasons two-thirds of clubs promoted to the Premier League did so without parachute payments.”
The Premier League’s proposals are for relegated clubs to receive STG23 million in the first year, STG18 million in the second and STG9 million in years three and four. It would mean a possible total of STG59 million over four years compared to the maximum now of STG48 million.
Clubs in the Championship not receiving parachute payments would get STG2.3 million in solidarity payments – but still more than the money from their own TV deal.
The offer of solidarity payments for League One clubs is STG360,000 and STG240,000 respectively a 6.6 per cent and 5.4 per cent rise.
The increase in parachute payments from STG16 million is because of the rise in the Premier League’s TV rights from 2013-16 – and it effectively decides on the level it pays.
Premier League chief executive Richard Scudamore said last month he understands anxieties over a proposed increase in parachute payments for relegated clubs but claims the evidence shows the system is fair.
He pointed to the fact that of all the clubs promoted in the last 15 years, 60 per cent had not been receiving parachutes.
Scudamore said then: “It’s nothing new – there have been those concerns from the day the parachute system was introduced. What we did three years ago in extending the period to four years was potentially giving 12 Championship clubs parachutes.
“That is better for the Football League and not worse because it means more clubs have got substantial amounts of money.”
