Southampton and other Premier League clubs are set to receive around £4-5m after Watford and Norwich were promoted back to the top-flight at the first time of asking.
Via information from Hampshire Live reporter Tom Leach, parachute payments that were allocated to both the Hornets and the Canaries after their relegations last season will now not be required and will instead be spread through the Premier League.
The figure of £4-5m could even rise further with AFC Bournemouth – also relegated last season – close to securing their place in the Championship play-offs and having a chance to also return to the top division.
Saints will be trying to get as many funds together as possible before this summer as they attempt a strong rebuild for the 2021/22 season, but the whole parachute payment situation does raise further questions about the gulf between the Premier League and the EFL.
Southampton and others benefitting from unequal payments
There are many sides to this story that need assessing – particularly during a pandemic where the future of so many clubs continues to hang in the balance.
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It is not the fault of Saints or any other Premier League clubs that Watford and Norwich have bounced straight back up again, but they are set to receive a boost to their finances because of the inequality in the football pyramid right now.
Premier League TV rights deals mean that clubs that are relegated need parachute payments to ease them back into the second-tier. However, it has become the norm for clubs to use this money to keep star players and fight for promotion instantly as other teams work on a shoestring budget.
£83m has been quoted as the amount of leftover money that is to be shared amongst top-flight clubs over the next two seasons, but this could be hugely valuable to those in League Two, League One and even the Championship.
The Premier League and its clubs did agree to help the lower divisions with grants and interest-free loans back in December and, although parachute money belongs to the top-tier, more could surely be done if things start to escalate.