Gary Neville fires warning over parachute payments and "financial obliteration" concerns

Gary Neville has warned the “huge inequality” of parachute payments has made clubs “unhealthy and desperate.”

Sky pundit Neville has insisted the new regulator needs to address the issue to stop the £270m problem which is threatening to make the a closed shop. The three clubs relegated from the Premier League last season - Luton, Sheffield United and - will receive £49m each for their first season in the Championship and £40m in their second year of parachute payments.

They were designed to help clubs cope with the cost of relegation from the top flight but Neville fears it is making it harder for new teams to get promoted and relegation should be a bigger worry than “financial obliteration.” Neville, who is the majority shareholder of League Two club Salford City, has welcomed the move by Secretary of State Lisa Nandy to include parachute payments within the independent regulator’s brief to try and find a better compromise.

legend Neville, in an interview with Nandy at the National Museum, said: “I think it's an emotive subject. And I think this is the time for real thought around this because there is an angle that you want clubs that go up to be able to spend money so they can compete with the mighty clubs that live within the Premier League and exist within the Premier League.

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“But then you get down to the Championship where it just creates this huge inequality which is unhealthy for the game and it creates a desperation. And we're now getting to a point where I was seeing almost the same three clubs going up and the same three clubs going down because of the fact they've got such an advantage.

“And parachute payments need dealing with. They need dealing with in a thoughtful manner which doesn't stress Premier League clubs too much, but also deals with the Championship and the inequality in the rest of the pyramid.

“Going down should bring great sporting disappointment. It shouldn't bring financial, you know, obliteration effectively. And I think that's the way in which the game should sort of go.” The Premier League are in favour of keeping parachute payments and initially saw their inclusion under the regulator as a success.

But the EFL equally were happy that, together with the regulator having the power to bring in a backstop to enforce a new financial deal with the Premier League, that it would also review parachute payments and potentially reduce their importance.

Neville added: “I think there is always a position and a compromise. And I'd like to think that, you know, I'm a member of the EFL. I would encourage the EFL to want to go and do a deal with the Premier League, not encourage the Premier League. I'm a Premier League fan of Manchester United fan. I want my club to be successful.

“I want them to have revenue. I want them to do well. I want them to be able to sign the best players in the . We demand this as fans. So I'm hoping that basically the inclusion of these types of things will mean that there is a deal and that sensible for the whole game.”

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