Championship – Parachute payments to be extended
Premier League clubs have proposed to extend ‘parachute payments’ for relegated clubs from two years to four years to total £48 million.
Under the plan, which has to be agreed by the Football League as part of the solidarity package of payments made to them by the top-flight clubs, clubs relegated to the Championship this season will receive £16m a year for two years, while under the new proposals relegated clubs would get £16m for each of the first two years and then £8m for each of the second two years.
The proposal was discussed at Thursday’s meeting of Premier League chairmen but no vote was taken – a final decision will be made at their annual summer meeting in June once an agreement with the Football League has been reached.
West Ham owner David Gold told Sky Sports: “It also helps the Football League and indeed all the way down to the lower divisions.
“It’s percentages of the available TV money which is a standard process and that has traditionally been 50 per cent for the first two years and now we’ve got an additional 25 per cent for years three and four, which I think is excellent and I’m delighted.
“I think a total for the four years would probably amount to somewhere in the region of £48m.”
The payments are part of the solidarity package of money paid to the Football League over the next three years. The 2007-10 package saw more than £90m handed over including £5.4m for youth development.