11 May 2010Football League accepts parachute payment plan

Football Finance News | Football Leagues/ Association and Governance

England's Football League clubs have voted in favour of accepting increased parachute payments over a four-year period to reduce the financial burden on sides relegated from the top division.

Teams demoted from the English Premier League will now receive money totalling £48 million - £16 million for the first two years and £8 million for the next two - rather than the initial proposal of £16 million per season for two years.

A Football League spokesman said the organisation will continue to work with the top flight in the best interests of English football, adding: "Whilst many clubs expressed concerns about the proposals, their acceptance was considered the only viable way forward."

Prior to the new deal, there had been concerns that a failure to reach agreement could lead to the Championship breaking away from the lower professional divisions to run its own affairs.

Last week, the Telegraph claimed recently-relegated Portsmouth will sell their entire playing squad to reduce arrears of £138 million.

Written by Terry Mitchell

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