Key facts
- Parachute payments increase a club's likelihood of promotion to the Premier League by four times.
- A new study recommends that these payments be abolished.
- In the past five seasons, two of the three promoted teams from the Championship received parachute payments.
- In the last two campaigns, all three promoted teams were relegated straight back out of the Premier League.
- Championship clubs receiving parachute payments earned an average of £62.9 million in revenue in 2023-24, compared to £26.7 million for non-parachute clubs.
- The wage bill gap between parachute and non-parachute clubs ballooned to £43.3 million in 2023-24.
Parachute payments, a series of solidarity payments made by the Premier League to relegated clubs for up to three years, are significantly increasing the chances of promotion back to the top flight, according to a new study. These payments are designed to help clubs adapt to reduced revenues in the Championship, but critics argue they create an unfair financial advantage.
The study indicates that clubs receiving these payments are four times more likely to achieve promotion. This has led to concerns about a growing imbalance in English football, with the Premier League potentially becoming an elite league for a select group of clubs. In recent seasons, a majority of promoted teams have been those receiving parachute payments, and many are subsequently relegated straight back down.
Football finance expert Kieran Maguire highlighted the stark financial disparities, noting that in 2023-24, Championship clubs with parachute payments averaged £62.9 million in revenue, compared to £26.7 million for those without. The wage bill gap also widened significantly to £43.3 million, and parachute clubs fielded squads worth an average of £157 million, versus £19 million for others. EFL chairman Rick Parry has previously described this widening gap as a 'major concern'.