Parachute plan to provide softer landing

Under the plan, which has to be agreed by the Football League as part of the solidarity package of payments made to them by the top-flight clubs, the parachute payments would be made over four years rather than two.

It would not come into force until the end of next season, however, meaning that Hull City would not benefit if they go down this time.

Those clubs relegated to the Championship this season will receive 16m a year for two years, while under the new proposals relegated clubs would get 16m for each of the first two years and then 8m for each of the third and fourth years.

The proposal was discussed at yesterday's meeting of Premier League chairmen but no vote was taken – a final decision will be made at their annual summer meeting in June should an agreement with the Football League be reached.

The worry about extending the payments – held by Doncaster Rovers chairman John Ryan among others – is that they could serve to increase the advantage relegated clubs hold over their rivals in terms of being able to guarantee higher salaries to players for a longer period.

Ryan said: "I don't think this is fair. It makes it even less of a level playing field in the Championship. Most of the teams relegated already go straight back up – Newcastle and West Brom. This move is against the merits of sport. Fairytales of the past will no longer happen.

"We have a budget of 6m. How can we compete with Newcastle United on 42m? There is a danger that the Championship will become Premier League Mark II with all the teams receiving parachute payments at the top and all the others at the bottom. It's a sad day when promotion and relegation is decided by cash."

The Premier League are to launch a legal challenge to Ofcom's ruling forcing Sky to cut the price they charge rival broadcasters to carry their sports channels.

The league fear the ruling will lead to a drop in their clubs' income. Sky will have to sell on Sky Sports 1 and 2 to rival broadcasters for up to 23 per cent less than the current wholesale price, according to the ruling by the regulator.