Premier League Overhauls Parachute Payments System

02 Jun 2015 | sigadmin

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The English Premier league has changed its solidarity payments system for clubs competing in the Football League as it prepares to reap the benefits of its new media rights deal which is split between Sky and BT Sport.

The changes will mean that promoted clubs who are relegated after a single year in the Premier League will no longer benefit from full parachute payment from the 2016-17 season.

Bournemouth, Watford and Norwich City, all three who were promoted from the Championship this season, will miss out on a year of parachute payments if they are immediately relegated in 2015-16. The new rules will have no effect on the three clubs most recently relegated from the top flight; Hull, QPR and Burnley.

Additional changes to the parachute payments system will also mean that at least £64m will be distributed to relegated clubs over three years, rather than four, and clubs who go back down after one year in the Premier League will only receive the first to years of payment, rather than three.

UK pay-television broadcasters Sky and BT Sport secured the live domestic rights to the Premier League over three years from 2016-17 to 2018-19, for a total of £5.14bn. The next rights deal means that the parachute payments are likely to significantly rise from the 2016-17 season. Overseas rights revenue has not yet been added to the £5.14bn figure.

Richard Scudamore, chief executive, Premier League, said: “The Premier League and our clubs are committed to sharing a significant amount of revenue for the development of football outside of the League.

“The increase in solidarity payments to Football League clubs across seasons 2016-17 to 2018-19 is an important part of that, as is our continued support for community facilities, sports participation programmes and other groups and projects.”