Premier League to increase solidarity payments to the Football League
Fri 19th Mar 2010 | Money & Finance
The Premier League is preparing to pledge more than £100 million a season to the Football League in an attempt to bridge the financial gulf that has taken numerous clubs to the brink of ruin as reported in the Times newspaper toady..
It’s thought that the deal, which has yet to be ratified, will see clubs relegated from the Premier League receive parachute payments for up to four years instead of two as is the current deal. It is hoped this will bring greater financial stability to clubs.
It is also expected that there will be a significant increase in the solidarity payments to the Football League and its 72 member clubs. Under the terms of a three-year deal signed in July 2007, the Premier League is committed to paying £20.6 million a season to the Football League in solidarity payments — £5.4 million to invest in youth development, £4 million for community programmes and a further £11.2 million to distribute among the 72 clubs — in addition to parachute payments of £11.2 million for those clubs relegated in either of the previous two seasons.
The new proposals would mean a maximum overall parachute payment of £48 million per club, with the sum potentially starting at £16 million in the first season and continuing to £8 million in the fourth season in the event that the club have not won promotion back to the top flight.
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