April 16 – Parachute payments for relegated clubs would total £48 million over four years if new Premier League proposals are agreed, it has been revealed today.
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 £16 million ($24 million) a year for two years from the next season, while under the new proposals relegated clubs would get £16 million for each of the first two years and then £8 million ($12 million) for each of the third and fourth years.
The proposal has been discussed at a meeting of Premier League chairmen but no vote was taken - a final decision will be made at their annual summer meeting in June should an agreement with the Football League be reached.
The worry about extending the payments - held by Doncaster Rovers chairman John Ryan among others - is that they could serve to increase the advantage relegated clubs hold over their rivals in terms of being able to guarantee higher salaries to players for a longer period.
Ryan said: “I don’t think this is fair. It makes it even less of a level playing field in the Championship.
“Most of the teams relegated already go straight back up - Newcastle and West Brom.
“This move is against the merits of sport.
“Fairytales of the past will no longer happen.
“We have a budget of £6 million ($9 million).
“How can we compete with Newcastle United on £42 million ($64 million)?
“There is a danger that the Championship will become Premier League Mark II with all the teams receiving parachute payments at the top and all the others at the bottom.
“It’s a sad day when promotion and relegation is decided by cash.”