MX23RW : Saturday, December 21 08:50:00| >> :600:3115425:3115425:

Football League to increase relegation parachute payments

The Football League announces that it will distribute more money to clubs relegated from League Two in an attempt to prevent "financial trauma".

The Football League has announced that it will increase parachute payments to clubs relegated from League Two to the National League from 2016-17.

The two clubs relegated from the fourth tier of English football currently receive 50% of the equivalent Basic Award payment that League Two teams are given for a season in the division.

However, from the start of next season, they will instead be awarded 100% of that payment in their first year following relegation, and 50% the following year, unless instant promotion back to the Football League is achieved.

The Football League's chief executive, Shaun Harvey, revealed that this change was being made in an attempt to prevent clubs falling into "financial trauma" after losing their League status.

Harvey said: "In recent seasons we have seen a number of clubs suffer severe financial trauma following relegation from The Football League and in some cases fold altogether.

"As a result, it became increasingly clear that we needed to review existing arrangements and address our approach to managing the financial transition for clubs in these circumstances.

"I would like to pay tribute to our clubs for taking this decision. It is testament to their collective solidarity, given that the League's financial distribution formula means that the bulk of this money will come from funds that would otherwise be provided to Championship clubs, who are ultimately the least likely to benefit from it."

Dagenham & Redbridge and Yeovil Town currently occupy the two League Two relegation spots, with both clubs three points adrift of safety.

ID:256004: cacheID:256004:1false2false3false:QQ:: from db desktop :LenBod:restore:2525:
Written by
Tom Nightingale
Restore Data
Share this article now:
A general view of Home Park ahead of the Johnstone's Paint Trophy second round match between Plymouth Argyle and Swindon Town at Home Park on October 7, 2014
Read Next:
League Two roundup: Late strike puts Plymouth four ahead
>
Read more about Shaun Harvey Football
rhs 2.0
Today's games header
6pm
Texans
@
Chiefs
9.30pm
Steelers
@
Ravens
Tables header RHS
TeamPWDLFAGDPTS
1Barnet22152546252147
2York City22136344202445
3Forest Green RoversForest Green21136239172245
4Gateshead22125541271441
5Oldham AthleticOldham20117236191740
6Rochdale21113731191236
7AltrinchamAltrincham229763628834
8Yeovil TownYeovil2210482723434
9Halifax TownHalifax229762522334
10Solihull MoorsSolihull229583835332
11Sutton UnitedSutton229582927232
12Hartlepool UnitedHartlepool227962424030
13Eastleigh217862928129
14Dagenham & RedbridgeDag & Red217773526928
15Southend UnitedSouthend226972424027
16Tamworth217592337-1426
17Aldershot TownAldershot2257103139-822
18Fylde2264122743-1622
19Woking2256111932-1321
20WealdstoneWealdstone214892432-820
21Braintree TownBraintree2255121931-1220
22Maidenhead UnitedMaidenhead2255122744-1720
23Boston UnitedBoston2236131937-1815
24Ebbsfleet2216151650-349


Sports Mole provides in-depth previews and predictions for every match from the biggest leagues and competitions in world football.
Argentina's Lionel Messi kisses the World Cup trophy after collecting the Golden Ball award on December 18, 2022Sign up for our FREE daily preview newsletter direct to your inbox!