Parachute payments are likely to rise significantly from the 2016-17 season, however, when the new Premier League TV rights deal takes effect. The £5.3bn domestic rights package is 65% higher than the current deal and the overseas rights have still to be agreed.
From the 2016-17 season relegated clubs will receive 55% of the equal share of broadcast revenue paid to Premier League clubs in the first year after relegation, 45% the following year and 20% in year three. Clubs relegated after a single season will receive 55% and 45% over two seasons with the third payment eliminated entirely.
Shortly after the Premier League announced the deal for domestic rights, it revealed that 20% of that would be invested in facilities for grassroots football, solidarity payments to lower-league clubs, encouraging participation, as well as education and support for disadvantaged groups.
Championship clubs currently receive £2.3m a season with League One clubs getting £360,000 a season and fourth-tier clubs being handed £240,000. Under the new arrangements the solidarity payments will be based on a percentage of a third-year parachute payment with Championship sides getting 30%, League One clubs 4.5% and League Two 3%.