Government adds parachute payments to Football Governance Bill as Man United and Man City watch on

Parachute payments will now be considered in the independent regulator’s assessment if it is called upon to impose a television cash settlement between the Premier League and the EFL, according to the Government.

These payments, given to top-flight clubs when they are relegated to the Championship, were controversially excluded in the original Football Governance Bill introduced to Parliament by the Conservative Government earlier this year. However, an enhanced Bill is set to return to Parliament on Thursday, allowing the regulator to consider these payments under its backstop powers, which can be used to mediate a financial deal between the leagues if they cannot agree on one themselves.

The revised bill will also require clubs to effectively engage with fans on ticket prices, amid concerns from some Premier League club supporters’ groups that their teams are trying to price out loyal season ticket holders. Another significant amendment is the requirement for clubs to provide greater transparency on their efforts towards meeting equality, diversity and inclusion (EDI) standards as part of the regulator’s corporate governance code for clubs, something both Kick It Out and the Black Footballers Partnership have previously advocated for.

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The inclusion of parachute payments in the assessment of a fair financial deal is arguably the most significant change, however. EFL Chairman Rick Parry has been vocal about his concerns regarding the distorting effects of parachute payments on the Championship, and the Government has stated that excluding these payments from