Premier League clubs must give up £20m EACH to prevent ‘catastrophic’ price of relegation, say EFL chiefs

PREMIER LEAGUE clubs are being urged to each give up £20million per season to end the “catastrophic” cost of relegation.

EFL chairman Rick Parry outlined measures he feels are necessary to keep their clubs alive — which include up to £400m a season from the Prem’s cash pot.

GettyRick Parry urged Premier League clubs to dish out £20million each per season[/caption]

He said: “The current system with parachute payments leads to irrational behaviour by clubs in the Championship and that is unsustainable. Our plan would actually increase the values of the non-top-six clubs over time.

“They’d make them ALL more valuable because, with the de-risking, it would no longer be catastrophic to be relegated or not to be promoted.”

Under the Parry plan, there would be a pooling of Premier League TV revenues — currently worth around £3.5billion per year — and the EFL’s £595m deal.

Three quarters would go to the 20 Premier League clubs with the EFL sharing the rest.

But the new model, mooted in the week the Government is set to publish the White Paper that includes an independent regulator, would also see a change in the ‘merit rake’.

The EFL want the Prem’s bottom club to earn half of the TV money the champions get, like in the Championship.

Using 2018-19 as a model, Parry said: “That season Huddersfield, who came bottom of the Premier League, earned £97m while Norwich took £8.2m for winning the Championship. It’s a gap of £88m, pretty much unbridgeable.

“If we pool the revenues and split it 75-25, change the merit rake and abolish parachute payments, we can reduce it to £44m.”

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Parry’s words prompted a strong pushback from Premier League chiefs, signalling a lack of any agreement.

A spokesman said: “We have made clear financial proposals relating to increased funding for the pyramid and accompanying financial regulation.

“The Premier League has clear parameters for discussions provided by a club mandate agreed in November.”