Exclusive: Leeds & West Brom facing £95.2m hammer blows, Mills reacts to 'Evil' new plan
Danny Mills has backed Rick Parry’s call for parachute payments to be scrapped in what could deprive Leeds United and West Brom of £95.2million if promoted.
Speaking exclusively to Football Insider the former Leeds and Manchester City full-back insisted clubs should not be rewarded for failure and claimed the money has been ‘gambled’ by sides in recent years.
EFL chairman Rick Parry called for the “evil” parachute payments to be abolished when speaking to the Digital, Culture, Media and Sport committee on Tuesday.
EFL chair Rick Parry says "need a complete reset" of lower-league finances and "rescue package" from Premier League.
But he says current "parachute payments are an evil that need to be eradicated"
6 Championship club each get average of £40m from PL while other 18 each get £4.5m
— Rob Harris (@RobHarris) May 5, 2020
That would mean automatic promotion favourites Leeds and West Brom missing out on huge pay days over the coming years.
When asked by Football Insider if he supported the call for the payments to be abolished, Mills said: “The parachute payments were set up for a very good reason but I do not think they are being used for what they were designed for.
“The problem is that they were supposed to help teams coming down to pay wages and make it sustainable for one season. What we have seen is teams knowing they are going to get the parachute money and subsequently gamble that money. They spend that, knowing it is coming in two years time. They are using it, effectively, as a loan.
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“It is not fair on the Championship sides. You should not be rewarded for getting relegated.
“You get around £120million for getting into the Premier League, why should you get another 20 for being rubbish? It makes not the slightest bit of sense.”
For the period 2019-2022, promoted clubs receive a first-year parachute payment of £41.8m and and a second-year top-up £34.2m in the event of instant relegation.
Clubs who stay in the Premier League for at least one season before relegation receive a third-year payment of £15.2m.
That potential £95.2m windfall could be consigned to history if EFL chairman Rick Parry gets his way.
In other Leeds United news, Noel Whelan has urged Victor Orta to complete £10.6million deal for Ben White replacement.