RESTRUCTURE: EFL chair wants financial balance in football
EFL chairman Rick Parry has reiterated calls for parachute payments to be abolished for clubs who are relegated from the Premier League
Under current rules, relegated clubs are given a percentage of TV money that decreases over a three year period following relegation.
“Really the clue is in the name – nobody ever needed a parachute for falling off a step. You need a parachute because clubs are falling off a cliff,” he said.
“Well, let’s address the cliff – and then parachutes won’t be necessary.
“We need to think of one pyramid and a seamless transition, where relegation isn’t a catastrophe and where promotion doesn’t present enormous challenges.
“There’s no doubt, we’ve got to be realistic, the economics of the Championship are broken.”
To that end, Parry wants new financial sustainability rules, including capping wages at 60 per cent of turnover throughout the EFL.
“UEFA are making changes which are not too far removed from our own thinking,” Parry said.
He does not believe football needs an independent regulator, but accepts one is almost certainly coming following the interim findings from Crouch published in July.
Asked about whether there was a role for an independent regulator in setting financial rules, he said: “We believe it is perfectly legitimate for leagues and sporting governing bodies to have their own financial rules.
“Financial fair play, we believe, falls squarely into that. It flows down from UEFA and the thing the Government have to bear in mind is that we’re not operating in a vacuum. So we do need that degree of consistency.”
The interim Crouch findings also favoured a fan veto over club heritage matters, such as changes to the badge, club colours or stadium ownership.
Parry believes the FA does a good job of managing those issues currently, but said: “I have every sympathy with protecting the heritage. If you look at nearly all the instances where clubs have had difficulties, it has followed a change of ownership of the stadium. That is almost inevitable.
“So protecting the stadium, protecting heritage, if the regulator wants to take it on, I have no problem at all with that.”
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