Premier League And EFL In Secret Talks To Remove Parachute Payments
The Premier League and the EFL have had secret meetings to discuss the controversial parachute payments system being phased out, with alternatives to be presented to top-flight clubs for consideration.
Throughout the Covid period, there were continuing discussions about how to better organize money distributions. While the EFL has identified parachute payments as a major issue, the Premier League has stood firm in its support for the current system, citing the £1.5 billion it sends down the tiers over three years.
This stance has shifted as a variety of other alternatives have been created and discussed among executives. There is a lot of pressure to make those changes happen.
Clubs that are demoted from the Premier League are awarded parachute payments to help them cope with the financial losses that come with exiting the top division. The EFL claims that this creates a competitive imbalance by forcing other clubs to invest money they don’t have to.
source : Guardian sport