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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteIn English football, “parachute payments” can mean two different things. Most often, it means money the Premier League pays to clubs relegated from the Premier League to help them adjust their finances. Separately, the EFL handbook uses the same term for smaller, one-season payments to some clubs relegated between EFL divisions. The rules and amounts are not interchangeable.
How Premier League parachute payments work
The Premier League describes parachute payments as financial support for clubs after they are relegated from the league. The aim is to help them “re-adjust their finances” as they move out of the Premier League’s competition and revenue structure. The Premier League’s explainer says the payments allow clubs to plan for that possibility.
According to the league’s funding information and 2017 explainer, the arrangement has operated over three years since 2016/17, with payments declining each year. The official material cited here does not specify the current year-by-year percentages, calculation base or full eligibility conditions, so an exact entitlement should not be inferred from older reported rates.
Parachute payments versus solidarity payments
These are distinct routes for distributing Premier League money. Parachute payments go to eligible clubs relegated from the Premier League. Solidarity payments go to EFL clubs that do not receive parachute payments, according to the Premier League’s description of its funding. A club’s status therefore matters when distinguishing which mechanism applies.
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The EFL’s separate use of the term
The EFL handbook also calls certain payments to clubs relegated between its own divisions “parachute payments.” These are not Premier League relegation payments. The EFL handbook provision described in the EFL regulations provides for a one-season payment to three clubs relegated from the Championship to League One, up to 11.1% of the Championship club basic award. It also provides for a one-season payment to four clubs relegated from League One to League Two, up to 12.6% of the League One club basic award. Both provisions are conditional on continued EFL membership. These are maxima under the cited handbook text, not the amounts paid under the Premier League scheme; check the operative handbook for the applicable season when exact EFL entitlements matter.
| Mechanism | Paying body and recipients | Period and amount information |
|---|---|---|
| Premier League parachute payments | Premier League to clubs relegated from the Premier League | Three years with a declining payment each year, according to the Premier League; current rates and calculation terms are not stated in the cited official material. |
| EFL parachute provisions | EFL provision for specified clubs relegated between its divisions | One season; the cited handbook text sets maxima of 11.1% or 12.6% of the relevant division’s basic award, subject to continued EFL membership. |
| Premier League solidarity payments | Premier League to EFL clubs not receiving parachute payments | Separate distribution; a current per-club amount is not stated in the cited funding information. |
What the published scale figures do—and do not—show
The Premier League reported that 15 per cent of its income in 2019/20 was redistributed through combined solidarity and parachute payments to 138 EFL and National League clubs, alongside wider grassroots and community football funding. The league reported the figure in 2022, attributing it to an EY report. It is a historical combined-distribution figure—not the parachute-payment share alone, a current rate, or an individual club’s entitlement. The Premier League’s distribution account provides that context.
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Who was relegated after the 2025/26 season?
For the 2026/27 season, the Premier League identified Wolverhampton Wanderers, Burnley and West Ham United as the clubs relegated at the end of 2025/26. This is season-specific context, not a standing list of payment recipients. The Premier League’s 2026/27 season announcement records the change.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Where to check exact current terms
The Premier League’s public descriptions establish the broad three-year declining structure, but not a current payment schedule or complete eligibility test. Exact figures require the Premier League Handbook and applicable central-payment terms for the season in question. The league says its handbook is updated ahead of each new season; its explainer points readers to that rules framework. The EFL provisions must be checked in the operative EFL handbook separately.
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Funding discussions do not by themselves change either payment mechanism. On 30 July 2026, the EFL said it was awaiting a formal Premier League funding proposal for EFL Board review after discussions involving the EFL, Premier League and Independent Football Regulator. The EFL’s statement concerns broader funding context, not a confirmed change to the parachute-payment rules.
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