New Formula Seeks ‘Even’ Distribution of Revenues Between Premier League And Championship

English Football League (EFL) chief Rick Parry wants some course corrections to keep the teams in England’s lower leagues financially stable. To make it happen, Parry has proposed a fresh model of fund distribution which according to him, will reduce the financial gap between the Premier League and the Championship by almost 50 per cent. The EFL is in discussion with the Premier League, with Parry requesting each of the top-tier clubs to give up £20 million per season.

Parry has often demanded an end to the “evil parachute payments” provided to clubs that are demoted from the Premier League, The Sun reported. In his opinion, the current model of distribution of funds only serves to intensify clubs’ hunger to return to the highest tier.

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EFL consists of the Championship, League One and League Two of English football.

Parry, who was the chief executive of the Premier League from 1991 to 1997, said that the new system will eliminate the desperation as well as benefit the non-top-six clubs in the Championship.

The Parry plan further calls for the Premier League TV revenues, which are now worth about £3.5 billion annually, and the EFL’s £595 million deal to be combined. As per the present structure, the 20 Premier League clubs would receive three-quarters, while the remaining portion would be given to the EFL.

However, the new approach would see a shift in the “merit rake.” Similar to the Championship, the EFL wants the bottom club in the Premier League to receive half of the television revenue allocated to the champions. The plan has been brought to light right before the Government is scheduled to release the White Paper with an independent regulator.

Rick Parry explained his formula with an example from the 2018-19 season. That year, the difference between the Championship winner Norwich and Premier League’s bottom club Huddersfield was £88 million in 2018-19 owing to the existing distribution system. Norwich received £8.2 million for winning the Championship, whereas Huddersfield, who finished last in the top-tier competition, received £97 million. That difference would be reduced to £42 million under the recently proposed plan.

Parry also hinted at some modifications to the format of the Carabao Cup referring to the fact that the Champions League will be stretched from 2024. The EFL chief executive revealed the potential tweaks just before this season’s Carabao Cup blockbuster final between Manchester United and Newcastle United, scheduled on February 26 at Wembley Stadium.

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