The English Premier League has reportedly agreed a new parachute payment structure for relegated clubs that would see them receive around $92 million over a four-year period. While the exact figure has not yet been decided, it will be a significant increase over the $73 million over four years that relegated teams currently receive.
In 2010, the Football League, which oversees the npower Championship (England’s second division), voted to accept payments over four years instead of two, meaning that relegated clubs receive $24.4 million a year for two years, and then $12.2 million a year for two years after that.
Meanwhile, the ESPN report claims that the issue of increasing so-called “solidarity payments” to the 72 teams overseen by the Football League (England’s second through fourth divisions), has yet to be decided. This is a $3.2 million stipend the EPL currently gives to Championship clubs, compared to the Football League’s own $2.74 million hand-out from central funds.
The obvious fallout from these handouts is that former EPL clubs receive vastly more money than aspiring clubs, creating an uneven playing field for promotion, which angers the bosses of smaller clubs.