http://football.guardian.co.uk/News_Story/0,,2132135,00.html
The Premier League has responded to accusations of greed by making a landmark decision to give away up to £90million over the next three seasons to the 72 clubs that make up its poorer cousin, the Football League. The 'solidarity payment', of which the first instalment will be £24.2m for the new season, is an acknowledgement that the 20 top-flight clubs recognise the need to change the perception of a Premier League governed by fatcats, which is currently enjoying the first year of a £2.7billion global television deal.
In the Championship, some clubs will get more than others. The new money will be awarded in a descending arrangement down to and including the twelfth-placed club, while thirteenth- and lower-placed clubs will all get the same amount. All League One and Two clubs will also receive the same amount, which will be lower through each division.
The deal also means extra money for youth development and football - £9.9m will be awarded to clubs in the first year, a sizeable increase, and the money will be ring-fenced.
'The 20 clubs unanimously agreed to back this,' said Richard Scudamore, the Premier League's chief executive. 'In 1997, the year before I began this job, the total turnover of the League was £120m - which is what we will give away in total around the world this year. That is pretty remarkable and I make no apologies for the success story that is the Premier League. Our turnover in the coming season will be around £900m, so this is a not insignificant sum. We put on a show that is the envy of the world, and we believe this amount shows solidarity between us and the Football League, and is a proportionate response to our success.'
At the moment, the basic award payment for each Championship club is £1m. Clubs in League 1 and 2 receive £375,000 and £265,000 each respectively. The exact amount each Championship club down to twelfth place will receive on top of the £1m now depends on final league position, and how many clubs 'bounce back' and so free up parachute payments, which are awarded for the two seasons following relegation if promotion is not won back to the Premier League.
Last year Sunderland and Birmingham made an instant return to the top flight, leaving West Brom, plus Watford, Sheffield United and Charlton, as the four parachute clubs. Under the new scheme, Wolves, who finished fifth, would have received an extra £1,383,602, Southampton about £75,000 less and so on, until thirteenth-placed Cardiff and the clubs below, would be paid an extra £775,909. All clubs in League One would have been paid £103,480, and those in the basement division £68,987.
'We have been in conversation for some time about this - the Premier League clubs did not have to do this and we are extremely appreciative,' said Lord Mawhinney, the Football League chairman. 'I took it to the board and they agreed unanimously. The financial gap between the Premier and Football Leagues is overwhelmingly because of the success of the Premier League. It's a global brand, which gets recognition at both at that level and financially. Any generosity that takes account of this gap is extremely welcome. This will give reassurance to millions of fans.'
Gerry Sutcliffe, the new sports minister, was also broadly supportive, although he did stress the importance of Football League. 'It is one of the most watched and competitive of any in the world and the foundation on which the success of the Premier League depends. So it is right that some of the financial rewards from the Premier League's success are reinvested. I welcome this redistribution and in particular the new funding for community and youth-player development.'
Lord Mawhinney, who refused to comment on the ongoing financial crisis at Leeds United, offered assurances that there will be fresh regulations to ensure the money is spent correctly. 'We are in the process of putting together new structures - probably similar to a trust, although not actually one because they cost money to administrate - to protect the money for youth development. We wish to make it transparent and accountable.'
Scudamore announced that Premier League turnover will reach £1bn for the first time during the third year of the current TV deal, and that each Prem club 'will be guaranteed 10 TV payments even if they are not shown live 10 times this season. We did this to protect the smaller clubs because we now have two broadcast partners, Sky and Setanta, and so the choosing of games will be more contentious now.'
