Parachute payments have been a large debate of topic among fans of the Championship for many years with sides who come down from the Premier League receiving payments from the English top flight to soften the financial blow felt by the drop.
For this year, the relegated sides from the Premier League (Leicester City, Ipswich Town, and Southampton) will receive payments from the Premier League.
Meanwhile, as the rules of the payments dictate, the payments can last for up to three seasons with relegated sides receiving 55% of the broadcasting rights revenue in the first year, 45% in year two and, if the club was in the Premier League for more than one season before relegation, 20% in the third year.
However, now the payments are set to undergo a major review by the Independent Football Regulator.
As reported in Sports Pro, the regulator will consider parachute payments and cliff edges within and between leagues in a report titled the ‘State of the Game.’
The report will also examine payments, along with the distribution of revenue across the pyramid more widely helping to provide balance.
Furthermore, it will consider issues such as the economics of the football industry and the financial soundness of clubs as well as other topics.
Meanwhile, speaking about the decision, Independent Football Regulator chair David Kogan stated: “The game has never been examined like this before. For the first time, we will shine a light on the financial pressures, governance gaps, and structural risks facing the football pyramid.
“The State of the Game report will give football the clarity it deserves, so decisions by the IFR can be made with confidence and for the long-term.”
The first draft of the report is due to be released later this year ahead of the final publication of the draft in 2027.
