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Apr 16, 2013

Parachute payments to increase

The Premier League has reportedly agreed new parachute payments for the next three seasons that will see relegated clubs receiving more than £60 million over a four-year period.

The exact figure to be paid out to each club has yet to be confirmed, but it is to be a significant increase from the current £48 million over four years that relegated sides currently receive.

The Football League voted to accept parachute payments from the Premier League over four years instead of two in 2010. This meant that rather than clubs dropping into the Championship receiving £16 million a year for two years, they picked up £16 million per season for the first two seasons, before a further two payments of £8 million per season.

The issue of solidarity payments to Football League clubs - a figure spread among its 72 teams - is yet to have been resolved.

The Premier League reportedly planned to halt the payments in 2010 if those clubs rejected its parachute payment proposals.

Last month, chairmen of the 24 Championship clubs met to discuss the latest proposal, however, the meeting ended in stalemate.

Rochdale manager Keith Hill claimed earlier in the season, while in charge of Barnsley, that the parachute payment system was "rewarding failure".

"I've never been rewarded for doing anything wrong or being relegated," he told BBC Radio Sheffield. "Clubs that get relegated get rewarded financially, how does that make sense?"

He added: "A long time ago teams like Bradford and Barnsley overspent when they were in the Premier League but it's not like that anymore. Teams don't need these solidarity payments. They've invested £8 million in one player to replace a player that they spent over £2 million on. It hurts so much that we've lost that match in that way, it angers me."

Hill was speaking after his Barnsley side had lost 2-1 at Blackburn in September, who spent £8 million on Huddersfield Town striker Jordan Rhodes following their relegation from the Premier League.

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