Championship clubs warn Premier League over hike in parachute payments for relegated teams

Football League clubs unhappy over increase, from next season, for sides dropping down to the Championship

A meeting of the 24 Championship clubs will today warn the Premier League that it risks permanently damaging “the integrity of the Football League” by proposing a big hike in parachute money for clubs relegated from the top tier which could distort competition.

The Guardian reports that the 24 Championship clubs could turn their back on the top tier of English football if there is a large increase in parachute payments to relegated clubs and only a small rise in additional payments for other clubs.

The total value of the new broadcasting deals, including domestic rights, will be a remarkable £5.5billion during a three-year period. The agreements will start from next season and will bring in £60-100million-a-year per Premier League club. The richest league in the world, which will see a 70 per cent increase on the current contract, will face accusations that it is not spreading its wealth fairly.

Parachute payments are set to increase in line with the new TV deals with the Premier League allegedly proposing a 40 per cent increase, from next season, for sides dropping down to the Championship. Clubs currently receive £16million a year for two seasons after relegation, then £8million for the next two seasons. The chairmen would instead prefer the Premier League to increase the ‘solidarity payments’ shared by Football League clubs.

Chairmen at the meeting will say the proposals risk damaging “the integrity of the Football League” and could make the recently introduced financial fair play rules “completely unworkable” if the scheme is given green light, according to The Guardian.

Reports claim Premier League clubs will discuss, in April, proposals that £62.7million should be split between the Football League clubs, but the current scheme is set to give £69million to the three relegated teams alone in their first season back in the Championship.

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