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League To Give Parachute Money!
By: Bill Osborne
THE Football League's Board of Directors will be placing a proposal to all 72 member clubs at the League's AGM on June 5 to extend the "Parachute money" system.
The proposal is that for future seasons the three clubs promoted to the Premier League will give up Â£165,000, with Â£120,000 to be received by each club relegated to Division 2 and Â£34,000 by each club relegated to Division 3.
Parachute payments already exist for clubs relegated from the Premier League and also from Division Three to the Conference.
The League's Head of Communications, John Nagle, said: "This is seen as a further positive step towards the stabilising of finances within The Football League. The introduction of parachute payments is seen as an essential part of helping clubs to cope with the additional wage burden they carry with them from a higher division to a lower one.
"When introducing a system of parachute payments it is important not to undermine fair competition within the Divisions as this can lead to a more predictable League and the emergence of 'yo-yo' clubs. However it is our belief that the amounts being presently considered do not threaten to damage the competition and represent a fair reflection of the extra costs relegated clubs carry with them."
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