Parachute payments to be discussed

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Premier League clubs will decide in June whether to extend 'parachute payments' for relegated clubs from two years to four years.

The proposal is part of a package of solidarity payments for Football League clubs that is being debated, with a decision due at the Premier League clubs' AGM in June.

It is understood however that any change would not go through without the consensus of the Football League.

The parachute payments, aimed at softening the financial blow of relegation, are due to rise from £12million a year to £16million from this summer.

The one worry about extending the payments is that they could serve to increase the advantage that relegated clubs hold over their rivals in the Championship in terms of being able to guarantee higher salaries to players for a longer period.

The Premier League agree a package of solidarity payments to the Football League over three years.

The 2007-10 package saw more than £90million handed over including £5.4million for youth development.

Money for Championship clubs varied depending on how many were in receipt of parachute payments - those that had made an instant return to the Premier League no longer received them and the money was distributed across the rest of the Championship depending on where they finished in the league table.

League One clubs received £103,480 each, with £68,987 going to League Two clubs.

Copyright (c) PA Sport 2009, All Rights Reserved.

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