Rick Parry, the chairman of the English Football League (EFL), believes the Government must tell the Premier League to give up £750million in order to bridge the financial gulf between the two organisations.
Parry made the pledge at the end of a week which has seen crisis club Derby County go into administration, with fellow Championship side Reading also set to receive a points deduction owing to a breach of financial rules.
Parry made the request for up to 25 per cent of the Premier League's revenue to be filtered down the divisions to Tracey Crouch MP, who is currently leading an independent review of football governance.
In an interview with the Telegraph, Parry's suggestion is to pool together TV rights for sale for both the Premier League and EFL. It is a proposal he made as PL chief executive in 1995 which was rejected by the then EFL board.
Parry said: “Under that system we would be able to look at the scheduling of the PL against the EFL, make sure we didn’t have clashes and maximise the value of the play-offs.
“I think we would make more money. We (EFL) would get 25 per cent of the total. We have no parachute payments because we don’t need them.”
For the 2019-2020 season, the last before Covid struck, Parry claims that parachute payments totalled £228million to eligible former PL teams, making up a third of total turnover across all 24 second tier clubs. He says that his members could be persuaded to vote to reject them wholesale.
He added: “In terms of distribution these [new] proposals are not the PL giving money to the EFL. I don’t see it as a subsidy. But it is fundamental that we want to maintain the vibrancy of the pyramid.
"My premise would be that most of the value from the PL comes from our biggest teams. Another vital part is that it is refreshed and you have constantly changing teams. Otherwise you just have sterility.”
In a lengthy interview, Parry also spoke about the "insanity" that gripped owners of Championship clubs.
In the 2019-2020 season alone the Championship had operating losses of £430million, a wage to revenue ratio of 120 per cent and an increase of total debt to £1.3billion.
Parry added: “We have profit and sustainability rules but the clubs are clearly neither profitable nor sustainable."
On the issue of parachute payments, he said: “You stand back and say: ‘How is this fair? How can a competition pay a vast amount of money to its own former members who are taking part in somebody else’s competition?’
"Maybe we should say either get proper redistribution or have no redistribution. Let’s just abolish the parachute payments and forget solidarity, and then see what happens.
"It’s an unbridgeable gap.”
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