Football League clubs meeting at St. George’s Park near Burton on Thursday have received a significant financial boost with the news that The League has concluded a new ‘Solidarity’ agreement with the Premier League.
The Football League and Premier League have concluded a new 'rolling' Solidarity agreement that will see a proportion of Premier League television revenues redistributed to Football League clubs from 2016/17. It provides the first contracted link between the broadcasting revenues of the two domestic professional leagues since the formation of the Premier League in 1992.
Under the agreement, parachute payments to relegated Premier League clubs will be reduced from the current four season to three seasons, with Championship clubs (that are not in receipt of parachute payments) being awarded a solidarity payment equivalent to 30% of a third-year parachute payment. League 1 and League 2 clubs will receive 4.5% and 3% of a third-year payment, respectively.
Football League Chief Executive Shaun Harvey said: “The eventual level of parachute and solidarity payments made to Football League clubs from 2016/17 will only be known once the Premier League has concluded the sale of its overseas rights. Nevertheless, given the scale of its domestic agreement, it seems reasonable to expect that the eventual amounts paid to Football League clubs will be substantially greater than those we’ve seen previously and could amount to more than £100m per season.
"This agreement is hugely significant for the domestic game, not just for The Football League, but also the Premier League and the England team, both of which benefit from a vibrant and financially sustainable set of clubs beneath the top division that will continue to invest in the players and managers of the future."