Town owner Marcus Evans proposed a salary cap on clubs relegated from the Premier League in order to limit the effect of increased parachute payments at a Football League meeting at Walsall yesterday. However, the proposal, one of two on the table, wasn’t voted on after intervention from the Premier League who threatened to with draw their annual solidarity payments.
Parachute payments to clubs dropping out of the Premier League are set to rise to a total of £59 million - up from the previous figure of £48 million — split over four years: £23million in the season after relegation, £18 million in the second and £9 million in each of the following two years.
Evans’s proposal was that this season’s relegated clubs have their spending on wages capped at £16 million in their first year out of the top flight, £10 million in 2014/15 and £8 million the following season.
Crystal Palace's alternative proposal was that relegated clubs wouldn’t receive an annual £2 million payment relating to TV income from the Football League.
However, plans to vote on the proposals were scrapped after Premier League chief executive Richard Scudamore sent an email to the Football League an hour and a half prior to the meeting’s scheduled start at 11am threatening to withdraw solidarity payments if either was implemented.
Currently, the solidarity payments are worth an annual £2.3 million to Championship clubs, £360,000 to those in League One and £240,000 for League Two sides.
Unsurprisingly several Football League club chairmen and owners are reported to be angered by the Premier League’s interference and bullying tactics.
While the Football League hasn’t commented, the Premier League told The Guardian in a statement: "A generous solidarity offer has been made to the Football League; however if the basis on which that original offer was made materially changes, then it is reasonable to review it."