Football League clubs are asking the FA to increase the amount of money that it hands out to other divisions. This past Tuesday it was announced that sides from the top flight would be paid as much as £60m over the next four years starting at the 2014 season. However, clubs are asking that the sides do not receive any additional funds.
The 72 Football League clubs met on Wednesday to talk about how payments should be distributed over the next three years. The clubs did not however reach an agreement about how payments should be disbursed and will meet again in May to talk about the matter in more depth.
The Premier League sold the broadcast rights for the next three years to BT and Sky for £3bn which is a very large increase over the past £1.25bn. Overseas rights to air the matches will put that total up to about £5bn. Out of that, parachute payments; which are money that is given to the different sides from top flight and cash that was given to clubs that did not receive parachute money consists about 15% of that total deal.
The Press Association Sport stated that clubs that are a part of the Championship that do not already get parachute payments will given £2.3m each which is more than they would get if they made their own TV deal.
League One Clubs will be given £360,000 and League Two will be given £240,000 which is a 5% to 6% increase. Parachute payments were originally created to help clubs that lost a large amount of revenue when they dropped out of the top division of England.
Even though there has been a lot of debate about solidarity payments and parachute payments the Premier League continues to insist that it does not prevent clubs from eventually being promoted into the Premier League.