Leeds United might face inquiry after EFL chairman Rick Parry lambasted Premier League parachute payments amid discussions about establishing an independent football regulator.
Parry emphasized that the parachute payments are only in existence to help demoted clubs seek promotion again, citing Leeds, Leicester, and Southampton as examples this season.
There have been proposals for an independent regulator to aid the Premier League and the EFL in their financial negotiations, in order to bring greater balance to the football pyramid.
Parry stated live on talkSPORT [20 March, 10:30]: “All of the challenges flow from it [parachute payments].” Nobody claims that we want to destroy the clubs that are leaving the Premier League; we agree that leaving the league is an issue.
“We would add, however, that the parachute payouts are a clumsy instrument. They have not been researched economically or thoroughly. Parachutes are designed to help these clubs recover, not to prevent them from going out of business.
“Look at the simple facts: in the last six years, two of the three promoted clubs have been parachute clubs.” Look at what will happen this year, with the top clubs replacing the most recently promoted clubs.
Will the independent regulator affect Leeds United?
Leeds, Southampton, and Leicester, which were relegated from the Premier League last season, are already demonstrating the impact of parachute payments on Championship clubs’ competitiveness.
The current title race between the three promoted clubs has received much appreciation for its high level of competition, but it has also been questioned because the three parachute payment clubs are leading the way.
Ipswich will most likely be cited as an example, as will Luton from last season, to demonstrate that promotion – or at least competing for it – is still achievable despite the increased spending, but the gap between the haves and the have-nots is wider than ever.
Given financing considerations, the establishment of an independent regulator should benefit Championship and EFL teams, but Leeds may see a direct impact on parachute payments – especially if they find themselves in the same position years later.
