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Page last updated at 10:05 GMT, Friday, 30 April 2010 11:05 UK

Premier League make payments threat to Football League


Football League upset by Premier League cash plan

The Premier League is threatening to cut off the £30m it gives to Football League clubs, BBC Sport understands.

The Premier League has offered improved parachute payments to relegated teams, as well as an increase to "solidarity payments" shared among all 72 clubs.

But the Football League fear the proposals could "distort competition" outside of the top flight.

If the Football League does not accept the proposals within three weeks, the "solidarity" payments could stop.

The proposal is to increase payments to sides relegated from the top flight from £24m over two seasons to £48m over four.

Bu Football League chairman Greg Clarke told BBC Sport: "The Football League are not in a position to accept it.


"We wish to clarify certain issues. There is certain unhappiness about a four-year parachute payment which some of the clubs think could distort competition. We've got to engineer a consensus."

BBC sports news correspondent Dan Roan said: "On the face of it the Premier League's proposals, including a doubling of the parachute payments to relegated clubs, seems very generous.

"But the Football League, especially those in Leagues One and Two have two concerns - firstly that it will, in time, create a 'second' Premier League in all but name, and secondly that it will threaten the Football League's sovereignty by forcing through rule changes."

Under the proposed extension of parachute payments, clubs would receive £16m in each of the first two seasons after relegation from the Premier League, and £8m in years three and four.

There is no appetite for a breakaway - we need to sort this out between ourselves

Unnamed Championship club chairman

Championship clubs not in receipt of parachute payments have received £830,000 over each of the last three years. Under the current proposals, that figure would rise to £2.2m per season.

However, League One and Two clubs would receive only modest increases, earning £325,000 and £250,000 respectively.

One Championship club chairman told the Press Association: "Understandably the Championship clubs were in favour because it means a lot more money for them, but the League One and Two sides are worried it will create a big gap.

"But there is no appetite for a breakaway - we need to sort this out between ourselves."

Meanwhile, a League Two chairman said the proposals "effectively create a Premier League Two by stealth, locking many of us out."

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see also
Parachute payment may be extended
09 Apr 10 |  Premier League
TV overseas deal for top flight
30 Mar 10 |  Premier League
Football League offered 90m deal
22 Jul 07 |  Football

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