PREMIER LEAGUE clubs are being urged to each give up £20million per season to end the “catastrophic” cost of relegation.
EFL chairman Rick Parry outlined measures he feels are necessary to keep their clubs alive — which include up to £400m a season from the Prem’s cash pot.
He said: “The current system with parachute payments leads to irrational behaviour by clubs in the Championship and that is unsustainable. Our plan would actually increase the values of the non-top-six clubs over time.
“They’d make them ALL more valuable because, with the de-risking, it would no longer be catastrophic to be relegated or not to be promoted.”
Under the Parry plan, there would be a pooling of Premier League TV revenues — currently worth around £3.5billion per year — and the EFL’s £595m deal.
Three quarters would go to the 20 Premier League clubs with the EFL sharing the rest.
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But the new model, mooted in the week the Government is set to publish the White Paper that includes an independent regulator, would also see a change in the ‘merit rake’.
The EFL want the Prem’s bottom club to earn half of the TV money the champions get, like in the Championship.
Using 2018-19 as a model, Parry said: “That season Huddersfield, who came bottom of the Premier League, earned £97m while Norwich took £8.2m for winning the Championship. It’s a gap of £88m, pretty much unbridgeable.
“If we pool the revenues and split it 75-25, change the merit rake and abolish parachute payments, we can reduce it to £44m.”
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Parry’s words prompted a strong pushback from Premier League chiefs, signalling a lack of any agreement.
A spokesman said: “We have made clear financial proposals relating to increased funding for the pyramid and accompanying financial regulation.
“The Premier League has clear parameters for discussions provided by a club mandate agreed in November.”
Source: Soccer - thesun.co.uk
