Leeds United given fresh promotion hope by bullish Rick Parry

In a gloomy prognosis of the League’s finances, chairman Rick Parry at least gave the Whites further encouragement they might be able to escape it and join next season’s Premier League.

The Football League (EFL) are still intent on completing the 2019-20 season despite the coronavirus pandemic, but in evidence to the House of Commons’s Digital, Culture, Media and Sport committee, Parry warned matches would have to be completed by July 31. The Premier League is also hoping to finish its campaign, and Parry warned of “outrage” and court action if they tried to deny teams promotion without saying if League One Rotherham United would be allowed to go up should their season not finish.

The Premier League’s founding chief executive also warned of a “£200m hole” in the finances of Football League clubs and called for a salary cap and a fairer system than “evil” parachute payments to deal with it.

Leeds are top of the Championship with nine matches left. Two sides are due to go up automatically, plus the play-off winners.

The Whites have not played in the Premier League since 2004 and on a sporting and financial level, promotion would have been transformative. It is reckoned to be worth in the region of £180m.

“We expect three Championship clubs to be promoted – the Premier League are aware of our position,” said Parry, giving evidence alongside counterparts from the England and Wales Cricket Board and Rugby Football Union. “The Premier League expects three clubs to be relegated.”

There have been suggestions some lower-end Premier League clubs want protection from relegation in return for completing their season at neutral venues, but this is unlikely to find favour with broadcasters, and safeguarding their contracts are a big motivation in finishing 2019-20. Global television companies are owed £762m-worth of matches.

Whether Parry’s support extends to movement between the Football League divisions was unclear. Rotherham are second in League One, Barnsley bottom of the Championship. Harrogate Town, second in the Conference, hope to win promotion despite their season being abandoned, but their division is now expected to wait for the League to act first.

In his opening months as chairman Parry has criticised the financial management of Championship clubs with 13 out of 24, including Sheffield Wednesday, spending more on wages than they receive in income.

When asked how many clubs could go out of business as a result of coronavirus, Parry replied: “Our objective, obviously, is to lose none. We would like to emerge stronger, leaner and more efficient, with a proper reset post-covid.

“We have a great deal of uncertainty around next season and when we’ll be able to return with crowds, which for the EFL is absolutely critical. We’re much more dependent upon the revenue and atmosphere generated by crowds than the Premier League. We are heading for a financial hole of £200m by the end of September.

“Salary caps, cost controls are absolutely essential. We have an imbalance in the distribution (of English football income), parachute payments cause immense stress within the Championship.

“What we’re talking about is the amount that clubs would have to pay, and then within that they would have the discretion to pay players whatever they wanted.”

Reports have suggested the proposed annual budget for League One clubs’ wages and agent fees could be £2.5m. Last season, Bradford City’s £4m wage bill was only the division’s fourth-highest. Parry also suggested limiting squad sizes and persuading FIFA to drop its opposition to short-term player loans. He was scathing about parachute payments to cushion the fall from the Premier League, where even the worst performing team can earn over £100m in prize and television money, to the Championship, where the winners can expect nearer £7m. Huddersfield Town are currently receiving parachute payments, whereas Middlesbrough and Hull City’s came to an end last summer.

“Parachute payments are an evil that needs to be eradicated,” insisted Parry. “We have six clubs in the Championship receiving parachute payments giving them an average of £40m per club. The other 18 clubs get £4.5m each.

“There is strong opposition to them in the EFL, apart from the clubs receiving them.

“They are a prime example of clubs being protected or helping them adjust to the chasm (between the divisions) but if we didn’t have a chasm in the first place you wouldn’t need them.

“The Premier League has said if they’re allowed to play then they will be in a position to talk to us about support for the lower leagues. We await that day – discussions to date, I think it’s fair to say have been limited.”

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