English, football

English football finances ‘unsustainable’, say lawmakers – Yahoo Sports

July 23, 2020

London (AFP) – British lawmakers called for a reset of English football finances following the coronavirus pandemic, proposing an end to parachute payments and salary caps for the lower leagues.

The Commons Digital, Culture, Media and Sport Committee (DCMS) warned of the dire financial situation facing many English Football League (EFL) clubs and called on the Premier League to do more to spread its wealth throughout the game.

Parachute payments are paid to clubs for up to three seasons after they are relegated from the top-flight to avoid the financial shock of missing out on huge television income.

Yet instead of protecting those clubs who fall out of the Premier League, they have had a destabilising impact as other clubs in the Championship overspend to try and keep up.