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Premier League and EFL in secret talks to remove controversial regulation

The Premier League and EFL are reportedly in secret talks to remove a controversial regulation that will really changed up football.

Discussions have been ongoing throughout the pandemic about removing the parachute payments system, with alternatives set to be put to top-flight clubs for consideration.

They are trying to work out how to organise financial redistribution better, with the EFL highlighting how much of a major problem parachute payments are while the Premier League had remained defiant in support of the current system – citing the £1.5bn it transfers down the leagues over a three-year period.

The Guardian report that that position has changed, with a number of alternative proposals developed and debated with executives.

Parachute payments are given to clubs relegated from the Premier League to cushion the blow of revenue lost from leaving top flight. The EFL argues this creates competitive distortion, with other clubs spending money they do not have to keep up.

One of the recommendations in the Crouch review, published last week, stated that the Premier League and EFL should come up with a solution to the parachute payments problem by the end of the year, with outside voices then brought in to advise on change if no solution can be agreed.

Although the discussions are understood to be advanced, ideas have not been presented to Premier League clubs or the EFL board. On Monday the Premier League board agreed to hold an emergency shareholders’ meeting this week to discuss the Crouch review.

Under the terms of the domestic TV deal approved by government for 2021, parachute payments are to remain in place for the next three season.

However, on Friday, Premier League’s chief executive Richard Masters, put forward a suggestion an idea of softening parachute payments. “If there is a way of uniting the clubs in our league and the clubs in the Championship with a new proposal,” he told the BBC, “we should drive for that and we’re happy to work at pace on that project.”

New ideas are expected to be put to Premier League shareholders, with parachute payments forming a safety net for clubs committed to big spending in the top flight.

Meanwhile, several Premier League executives have spoken out about the Crouch review which came out earlier this month, with vice-chairman of West Ham, Karren Brady, defending the parachute payment system by saying clubs would go bankrupt without the money and added when writing in the Sun that Tracey Crouch had “fallen into a do-gooder trap” by proposing reform. “Maybe Tracey and [EFL chair Rick] Parry confuse competition with fairness,” she went on.

Also supporting her opinion is Aston Villa’s CEO, Christian Purslow, and Crystal Palace’s chairman, Steve Parrish, speaking against the Crouch review.

Parrish warned against the implementation of an independent regulator for football, the key recommendation of the Crouch review.

Debating the point with Gary Neville on Twitter, Parrish said: “Regulators are there so that governments can control markets or companies within a framework they set and can alter. Regulators are instruments of government and they are independant [sic] only up to enforcing the current remit which can be changed at any time by a new act of parliament. So Football will be – under this plan controlled by government.”

Fans have reacted with reports the Premier League and EFL are in secret talks to remove the controversial regulation…

@nick__deal: Norwich are in the mud. #ncfc

@_NotJames_: Norwich’s entire business model is based on parachute payments. Delia is going to be incandescent at this news.

@DanieIEmery: Not sure this will do much other than putting to an end any chances of a team going up and being competitive without risking financial ruin. Clubs will still overspend in an attempt to get promoted too.

@JasonJ1987: How will Newcastle cope?

@OfficielKaybaye: Fulham are gonna be fucked.

@TallentireMedia: I get why this will make the Championship more competitive but it will also make the Prem even less competitive because newly promoted clubs will fear to invest

@AndiWithnail: They’ll still get the 110mill that relegated teams get, just not the 60, 30, 10 that follows.

@Halpinforpope: The parachute payment is the biggest atrocity in football, rewarding failure while every other club is left to rot! Surely being in the PL for at least 1 season is enough reward!

@nick__deal: If they’re really intent on addressing “competitive distortion”, I think they need to start with the Premier League and work their way down.

@AndiWithnail: Good shout. Its created a mini league of clubs too rich and good for the championship but not good enough to stay in the premier League, but collecting 110mill every time they get relegated.

@jasonlarke: Sorry, but that’s an oversimplification. Norwich, for instance, has benefitted from parachutes. But, to get promoted had to succeed despite owners with the lowest net worth in the top 2 divisions. You can’t remove parachutes without addressing the entire funding model.

@thetykester: If efl and premiereague talking no parachute payments its the way forward, why reward teams for relegation, said it always dont spend whst you not got

@the_canary: It will only benefit clubs with mega rich owners any other promoted club will be unable to construct a competitive team in the Prem as the risk of financial ruin on relegation will be too great. Big prem clubs will be able to hoover up any player they fancy

@twoht: They don’t want any reform. If they did, they’d have done it at some point over the last 25-30 years. We all fucking KNOW this. They had their chance and didn’t do it. But we’ll be treated to three of these a week for the next six months, because they sure do love money.

@oro7777777: Yes let’s make more clubs go bust great idea 👍🏻

@freelander97: 25% is insane. 16% is fine but parachute payments need to be looked at, not sure how you do that without fucking over the relegated clubs though

@silvesterldn: Tracey Crouch’s report on football governance and finances gave the game’s authorities a year to get their act together and come up with a funding plan for lower- and non-league football. So far it is not clear football’s leadership is living up to the moment

@pacificpaddy: Did he really just say not enough attention is given to the wellbeing of the Premier League?! Pure greed and self-interest. Unlike fans, he doesn’t love the game, he loves the money he makes from it.

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