Pompey to benefit from new larger parachute payments

From August, teams relegated from the Premier League will receive £48m in parachute payments, spread over a four year period.

The three teams relegated from the Premier League this season - Portsmouth, Hull and Burnley - will be the first to receive the larger payments.

The Football League clubs took the decision to accept the new proposals by the Premier League during a meeting at Walsall's Banks's Stadium.

A League spokesman said: "Following a frank but constructive meeting at Walsall's Banks's Stadium earlier today, Football League clubs have voted to accept the Premier League's revised Solidarity and Parachute Payments proposals.

"Whilst many clubs expressed concerns about the proposals, their acceptance was considered the only viable way forward.

"The Football League will now work in good faith, with the Premier League, to ensure that the resulting contract and regulatory changes are good for both competitions and football as a whole."

Fears had been raised that the move will simply distort the Championship.

Teams coming down from the Premier League will have a much larger budget for longer than teams that have been the Championship or below, for a period of time.

When Saints were relegated from the Premier League in 2005, parachute payments were £8m a year, for two years.

Under the new proposals, clubs will receive £16m in the first and second years, with a further £8m in the third and fourth years following relegation.

If they are promoted in that time, the outstanding parachute payments will be shared among the teams in the Championship.