Parachute payments multiply Championship broadcasting revenues by 4.8x for relegated clubs
Parachute payments to help clubs relegated from the Premier League manage a top-tier cost base on reduced turnover have come under scrutiny of late, with EFL Chairman Rick Parry spearheading an effort to have them scrapped in favour of a new revenue distribution model.
On average over the last six seasons, broadcasting revenues for newly-relegated clubs have been 4.8x higher than those clubs without parachute payments. Payments taper off over the next two years but remain almost 2x a "regular" Championship club in the third season following the drop.
Parry's desire is to make the Championship are more equitable competition while reducing the "cliff" to the Premier League, where 2019/20 average club revenues were over 9x the size of those in the Championship.