The Premier League is rumoured to be considering an additional £100m payment each season to the Football League in an attempt to shorten the financial gap between the leagues.
Premier League chief executive Richard Scudamore has proposed a deal in which clubs relegated from the top flight after next season will receive “parachute payments” for four years instead of the current two years. The proposal also talks of increased “solidarity payments” to the Football League.
The current deal sees the Premier League make solidarity payments of £20.6 million a season to the Football League. This is in addition to the £11.2 million for clubs relegated in either of the previous two seasons as parachute payments. The new proposal would see the maximum parachute payment rise to £48 million per club. The payments can potentially start at £16 million in the first season, continuing to £8 million in the fourth season if the club has not managed to win a promotion back to the top tier.
However concerns have been raised that this could lead to two levels in the Championship with recently relegated teams having a financial advantage over other teams.