Parachute Payments: Boost or Barrier in the Championship?
Parachute payments from the Premier League have long been criticized for creating an uneven playing field in the Championship.
Over the last decade, 15 out of 30 clubs relegated from the Premier League have secured promotion back to the top flight at the first attempt. Currently, recently relegated sides like Leeds, Burnley, and Sheffield United are in strong positions to do the same. However, Luton—who also went down last season—are now battling to avoid a further drop into League One.
The Championship is known for its unpredictability. Of the teams competing this season, 14 have experienced life in the Premier League over the past ten years. Interestingly, no club has remained in the Championship for more than a decade straight. QPR, for example, were relegated in 2015, while Bristol City and Preston—neither of which have featured in the Premier League—earned promotion to the Championship in the same year.
That sense of unpredictability was on full display last weekend when Plymouth, sitting joint-bottom, managed a surprise win over promotion-chasing Sheffield United.
“Even though parachute payments give recently relegated clubs a financial edge, a well-organized, hard-working team with smart recruitment and solid coaching can still push for the play-offs,” said David from the Forever Bristol City Podcast in a conversation with BBC Sport. “At that stage, history and stature don’t matter.”
He also pointed to success stories like Bournemouth, Brentford, and Brighton—clubs that have risen through the ranks despite limited resources—as examples of what’s possible with the right approach.