Parachute payments update emerges impacting Burnley, Sheffield United, Luton Town & Leeds United | OneFootball

Martyn Ziegler is reporting that the recently relegated trio are set for an increase on their parachute payments this term.

After winning promotion to the Premier League during the 2022/23 campaign, Burnley, Sheffield United, and Luton Town were all relegated from the Premier League after just one season - but are also in line for a financial boost in 2024/25 through increased parachute payments.

It was a disappointing campaign for all three, particularly Burnley and Sheffield United compared with Luton's attempts, and despite sides like Everton and Nottingham Forest receiving points deductions, the three promoted clubs all made an immediate return to the Championship.

It highlights the gulf in quality between the Premier League and the Championship, which has grown in recent seasons, with the money on offer in the Premier League dwarfing the second tier.

Thus, that makes it hard for Championship clubs to compete when promoted. However, they are all likely to compete this season, with only Leeds continuing to receive parachute payments, with Norwich City, Watford, and West Bromwich Albion running out of such financial advantages over the last couple of seasons.

Of last season's parachute payment teams, Leicester City and Southampton, both of whom were relegated to the Championship in 2023, made an immediate return to the Premier League, whilst the other relegated club, Leeds, finished third and reached the play-off final.

Those three are aided by the likes of parachute payments, more saleable assets, and the expectation, therefore, was always that they would compete at the top end of the division to bounce back to the top-flight at the first time of asking, be that from their own fans or those of other teams in the second tier.

Luton Town, Burnley, and Sheffield United recieve timely financial boost

With parachute payments in their bank accounts, the trio relegated from the Premier League this season will surely be confident of making an immediate return to the top-flight next season, as was the case in 2023/24.

It has previously been reported that MPs have urged the UK government to clear up any "confusion" over why parachute payments are excluded as a factor that English football's independent regulator can consider, should it have to intervene in the financial row between the Premier League and the EFL.

Martyn Ziegler of The Times has the latest on some of the proposed changes, which will continue to benefit clubs with parachute payments. In particular, Burnley, Luton, and Sheffield United are receiving increased payments in 2024/25.

Leeds were relegated in 2023 and remain in the Championship, and will receive £40.1 million this season, but the parachute payments themselves have now gone up to £49 million for first-year teams like the relegated trio.

It means they have hit a record level this season, but the independent football regulator could be given power over the Premier League’s controversial parachute payments for relegated clubs in the future, per Ziegler's report.

He wrote: "In a move that would anger England’s top-flight, the Labour government is set to increase the power of the regulator when it brings in 'strengthened' legislation for the new body.

"The EFL wants parachute payments scrapped, claiming they distort the Championship and give a huge advantage to relegated clubs."

He states that the government is also considering reintroducing the Football Governance Bill via the House of Lords in a move to speed up the latest updates in legislation.

The financial gap between the Championship and the Premier League just got wider

The three clubs relegated from the Premier League this season are perhaps not as strong as the clubs that were relegated last season, but they all started as some of the favourites to win promotion thanks to their parachute payments.

A host of clubs in the Championship will be in the hunt for Premier League football by the end of the campaign and those three were, naturally, among the early favourites. However, a situation is forming where there are a handful of teams who are strong in the Championship, but who can't quite make that step up.

They came down with plenty of talented players who were the subject of much interest and not likely to be playing outside of a top-flight league next season, but those that remained have become among the best players in the second tier.

That, and parachute payments, gives them a huge advantage over their Championship peers in making their advantage count and securing Premier League football once again. An extra £5 million only serves to widen that margin between themselves and the rest.