England's independent football regulator has announced it will review parachute payments to relegated clubs as part of its State of the Game report. The watchdog claims this analysis will reveal how money flows through the sport and assess the financial pressures faced by clubs.
The proposed scope of the report includes examining parachute payments, which are worth tens of millions of pounds to relegated clubs over a three-year period. The regulator says these payments distort competition and has called for their abolition so the wealth generated by the top flight can be shared more evenly among clubs lower down the pyramid.
However, the Premier League maintains that parachute payments are essential to give club owners confidence to invest in their teams. As such, negotiations between the two leagues over a new financial settlement have stalled.
As part of its investigation, the regulator will use "backstop powers" if it fails to reach an agreement with the Premier League and English Football League (EFL). The findings of the State of the Game report will help inform this decision, which aims to ensure more money makes its way down the football pyramid.
The regulator claims that this report will be the most in-depth assessment ever conducted on the sport. It will examine areas such as club debt and liquidity, models of ownership, the broadcast landscape, and player wages' impact on financial sustainability.
Other key topics include equality, diversity, and inclusion (EDI), fan engagement, and heritage – with a review of existing protections for club stadiums, crests, and colours also being considered. However, ticket prices and VAR will not be part of its scope.
The State of the Game report's terms of reference will undergo a four-week consultation before a final report is published in 2027.
The proposed scope of the report includes examining parachute payments, which are worth tens of millions of pounds to relegated clubs over a three-year period. The regulator says these payments distort competition and has called for their abolition so the wealth generated by the top flight can be shared more evenly among clubs lower down the pyramid.
However, the Premier League maintains that parachute payments are essential to give club owners confidence to invest in their teams. As such, negotiations between the two leagues over a new financial settlement have stalled.
As part of its investigation, the regulator will use "backstop powers" if it fails to reach an agreement with the Premier League and English Football League (EFL). The findings of the State of the Game report will help inform this decision, which aims to ensure more money makes its way down the football pyramid.
The regulator claims that this report will be the most in-depth assessment ever conducted on the sport. It will examine areas such as club debt and liquidity, models of ownership, the broadcast landscape, and player wages' impact on financial sustainability.
Other key topics include equality, diversity, and inclusion (EDI), fan engagement, and heritage – with a review of existing protections for club stadiums, crests, and colours also being considered. However, ticket prices and VAR will not be part of its scope.
The State of the Game report's terms of reference will undergo a four-week consultation before a final report is published in 2027.
Clubs that get relegated should have to pay back what they borrowed 
instead of getting tens of millions over three years...
. I mean, parachute payments are still gonna be worth tens of millions to relegated clubs over three years – that's a lot of cash 
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. What about increasing revenue from ticket sales, sponsorships, or even TV rights? That'd be a better way to address financial pressures 
Only time (and the final report) will tell 
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. I mean, can you imagine if our school had a situation like this with funding? It'd be chaos! 
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. I hope the report finds some solid answers for them. And on a personal level, it's cool that they're looking into fan engagement and EDI - those are super important issues in any sports team, school club, or anything! 
just saw this news about England's football regulator reviewing parachute payments to relegated clubs 
. I think it's about time they looked into how these massive sums of money are distorting competition and making it harder for smaller clubs to compete 
. That's a lot of cash that could be circulating among clubs lower down the pyramid instead of just the top flight 
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did you know that since 2019, there have been over 100 relegation and promotion battles in the English football league system? 
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one thing that's not being mentioned is the impact of foreign ownership on English football 
. We should definitely look at some stats on that too 
that's a big concern for fans and the wider community 
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