The Premier League and EFL have met to discuss alternatives to the parachute payments system, according to reports.
The payments, which see clubs relegated from the Premier League receive millions of pounds across a three-year period to soften the blow of missing out on top-flight riches, are controversial.
Some EFL clubs believe the payments give other clubs a competitive advantage with more money to spend on transfers and wages.
A glance at the Championship table shows Fulham and Bournemouth in the automatic promotion places, with West Bromwich Albion in fourth. Those clubs are beneficiaries of parachute payments after losing their places in the Premier League in recent seasons.
And two of last season’s promoted clubs – Norwich City and Watford – were also in receipt of parachute payments at the time.
Bristol City are among clubs to label the system “unfair”, but in a boost for clubs like the Robins, who have never tasted the riches of the Premier League, the Guardian has revealed “secret talks” have taken place on the issue.
The report, which comes after the Government’s Fan-led Review into professional football by Tracey Crouch MP, suggests alternatives to parachute payments are set to be tabled to the Premier League. The Crouch review has called for the Premier League and EFL to find a solution to the problem.
The top-20 clubs are said to have been “defiant” supporters of parachute payments, but this position has changed after long-running discussions about financial redistribution since the onset of the pandemic.
Top executives such as West Ham United vice-chairman Karren Brady have defended parachute payments, but Bristol City have gone on the record to express their desire to see them scrapped.
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CEO Richard Gould told the Daily Mail in October: “The parachute payments are so significant that they are making the Championship an unfair competition.
“Three years’ parachute payments ruin the ability to compete of the other clubs.
“It is really difficult for the EFL and I know they want to try to grip it. It’s in the Premier League’s best interests to ensure the gulf financially is closed otherwise they risk having a relatively boring competition where it all becomes a bit too predictable.
“The longer it goes on with these parachute payments that are out of kilter with the commercial reality of the Championship, the Premier League will just become a closed shop. The door is almost shut now. It’s probably three or four inches ajar and we’ve got our foot wedged in to try to make sure it doesn’t get shut permanently.”
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