Regulator to review parachute payments amid EFL row

The independent football regulator has confirmed parachute payments will be reviewed as part of its upcoming State of the Game work
The review lands in the middle of the Premier League and EFL fight over redistribution, with the regulator holding “backstop powers” if no deal is reached
The watchdog says its report will map how money moves through the top five tiers, then test club finances and governance across the system

English football’s independent regulator has confirmed that parachute payments to relegated clubs will be reviewed as part of “ground-breaking” analysis into the men’s professional game, with the controversial scheme again sitting at the centre of the Premier League and EFL dispute over how money is shared.

The watchdog has outlined the proposed scope of its State of the Game report, which it says will “shine a light on the financial pressures, governance gaps, and structural risks” facing the industry. It describes the project as “the most in-depth assessment of the industry ever conducted”, with a draft due later this year.

A key strand will examine the Premier League’s parachute payments, the multiyear support paid to relegated clubs that the EFL says distorts competition in the Championship. The Premier League position remains that the payments give owners confidence to invest, with talks over a new settlement still unresolved despite years of negotiation and political pressure.

The regulator has made clear that its work will not stop at parachute payments. The report is also set to look at “cliff-edges” between divisions, club debt and liquidity, ownership models, the broadcast landscape, and the effect of player wages and academy development on financial sustainability.

David Kogan, chair of the independent football regulator, said: “The game has never been examined like this before… The State of the Game report will give football the clarity it deserves, so decisions by the IFR can be made with confidence and for the long-term.” In an earlier BBC interview, Kogan said: “We are going to be a part of football’s future”.

The regulator will be able to use statutory powers to access information from clubs and competition organisers. Its terms of reference will go through a four week consultation, with a final report scheduled for publication in 2027. It will also examine Equality, Diversity, and Inclusion (EDI), fan engagement and heritage, including a review of existing protections for club stadiums, crests and colours, while ticket prices and VAR sit outside its scope.

WRITTEN BY

Jarrod

Jarrod Partridge is the Founder of Futbol Chronicle and an accredited journalist with over 30 years of experience following international football. A member of the AIPS International Sports Press Association, Jarrod has covered matches at stadiums around the world, bringing first-hand insight to every match report, player profile, and tactical analysis he writes.