‘We need a rescue package... parachute payments are an evil that need eradicating’ - EFL chairman Parry

EFL chairman Rick Parry, Picture: PA (Image: PA Wire/PA Images)

Speaking at a Department of Digital, Culture, Media and Sport Committee meeting this morning, Parry admitted the EFL is facing a £200million black hole in its finances by September.

Parry then called on the Premier League for help to enable more of their vast television income to filter down the football pyramid, particularly focussing on parachute payments for relegated clubs which have served to create a real imbalance in the Championship in particular.

“We need a rescue package,” Parry said. “We also need to address the longer term or we will back into problems in two or three years, they need to go hand in hand.

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“We’re heading for a £200million cash shortfall at the end of September, that is acute and it needs a rescue. But we need hope, we need a plan and we need clarity on the long term future. Where are we heading in the next two or three year? We can’t go from one bail out to another, we need to assess root and branch.

“It is not a bailout but we need a reset. Parachute payments are an evil that needs to be eradicated. They give six clubs on average £40m and the other 18 have £4m each so they are struggling to keep up.”

League One clubs, including Ipswich Town, receive in the region of £700,000 for their share of the Premier League TV deal.

Parry continued: “Lower down, solidarity is welcome but becomes worth less and less. Not a bail out but we need a reset, a rethinking and things need restructuring.

“It’s overdue and necessary.”

When asked how receptive the Premier League have been to talks, Parry said: “The Premier League has said that if they are allowed to play, they can then talk to us about support for the lower leagues. We await that day. Discussions to date have been limited I think it is fair to say but we look forward to clarity once they have more direction on their season.

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“I am not sure survival is dependent on PL clubs completing the season but if it gives the PL clarity to come and talk to us it would be very welcome.

“As things stand at the moment there is no direct link between the season starting and our clubs surviving.

“The rescue package isn’t in place yet and if restarting the Premier League assists the Premier League, great. But there is nothing in place yet that means money would flow directly from it.’

On when the decision to resume play will be made, Parry said: “It will go through the clubs, I think the board technically has the power but wholly appropriate in this situation to make sure it goes to the clubs.”