Premier League to extend parachute payments

Parachute payments for relegated clubs would total £48million over four years if new Premier League proposals are agreed.

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, the parachute payments would be made over four years rather than two.

Those clubs relegated to the Championship this season will receive £16million a year for two years, while under the new proposals relegated clubs would get £16million for each of the first two years and then £8million for each of the second two years.

The proposal was discussed at today'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% for the first two years and now we've got an additional 25% 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 £48million."

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 £90million handed over including £5.4million for youth development.