Thursday, April 29, 2010

Cash plan upsets Football League

The Premier League and the Football League are at odds over the proposals

Football League clubs are unhappy at Premier League plans to change the distribution of money to the 72 League clubs including parachute payments.

The clubs want clarification before voting to increase payments to sides relegated from the top flight from £24m over two seasons to £48m over four.

Some feel an expansion could "distort competition" below the Premier League.

"The Football League are not in a position to accept it," chairman Greg Clarke told BBC Sport.

"We wish to clarify certain issues. There is certain unhappiness about a four-year parachute payment which some of the clubs think could distort competition. We've got to engineer a consensus."

The Football League has until June to reach a favourable compromise on the proposals, which also include changes to the "solidarity package" which benefits all 72 League clubs.

DAN ROAN'S BLOG

BBC sports news correspondent Dan Roan said: "This is the first major rift between the richest league in the world and the oldest.

"On the face of it the Premier League's proposals, including a doubling of the parachute payments to relegated clubs, seems very generous.

"But the Football League, especially those in Leagues One and Two have two concerns - firstly that it will, in time, create a 'second' Premier League in all but name, and secondly that it will threaten the Football League's sovereignty by forcing through rule changes."

Under the proposed extension of parachute payments, clubs would receive £16m in each of the first two seasons after relegation from the Premier League, and £8m in years three and four.

Championship clubs not in receipt of parachute payments have received £830,000 over each of the last three years, and under the current proposals, that figure would rise considerably to £2.2m per season.

However, League One and Two clubs would receive only modest increases, earning £325,000 and £250,000 respectively under the new plans.

One Championship club chairman told the Press Association: "Understandably the Championship clubs were in favour because it means a lot more money for them, but the League One and Two sides are worried it will create a big gap.

"But there is no appetite for a breakaway - we need to sort this out between ourselves."

Meanwhile, a League Two chairman told BBC Sport that the proposals "effectively create a Premier League Two by stealth, while locking many of us out."

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