UK Government Maintains Parachute Payments for Football

Sports Minister Stephanie Peacock has confirmed that parachute payments for relegated clubs will not be abolished under the new independent football regulator, despite ongoing criticism from EFL chairman Rick Parry. The recently introduced Football Governance Bill allows the regulator to review these payments but only after a thorough 'State of the Game Review' within 18 months establishes their impact on financial stability. Peacock emphasized the importance of these payments while acknowledging their potential to create inflationary pressure on clubs. Currently, clubs relegated to the Championship receive significant financial support through parachute payments, which have grown substantially over the years. The government aims to mediate conflicts between the Premier League and EFL regarding financial distribution while maintaining the current structure of parachute payments. The Bill is set for further discussion in Parliament, but significant changes to the parachute payment system seem unlikely at this stage.