Birmingham City's push to increase revenue under Knighthead ownership aims to close the financial gap to Championship rivals benefiting from parachute payments. In the last seven seasons, 13 of the 21 teams promoted to the Premier League have been aided by these payments. Coventry City recently became the first team to win the Championship without parachute payments since Leeds United in 2020 under Marcelo Bielsa.
Only Four Parachute Teams in 2026/27
Next season's Championship will feature just four clubs receiving parachute payments: West Ham United, Burnley, Wolves, and Southampton. These payments are designed to soften the financial blow for relegated Premier League clubs over three years. The income disparity between the divisions is stark: the minimum Premier League revenue is around £100 million, while in the Championship it is under £11 million. Average weekly wages in the Premier League are about £93,000, compared to £16,000 in the Championship.
Payment Breakdown
In their first year after relegation, clubs receive 55% of the Premier League's equal-share broadcast revenue. West Ham, Burnley, and Wolves will each pocket approximately £55 million in 2026/27. Southampton, relegated in 2025, will collect about £40 million in their second year (40%). Ipswich Town, promoted back immediately, will not receive a payment. Leicester City, relegated to League One, will still receive a parachute after cashing in future payments via a loan from Macquarie Bank.
Third-year payments are 20%, but Burnley reset their claim by winning immediate promotion. Sheffield United and Luton Town, having spent only one season in the Premier League, do not qualify for third-year payments. The Premier League had set aside around £345 million for parachutes, but in 2026/27 only £245 million will be paid out. The remaining £100 million will be distributed among the 20 Premier League clubs, giving each about £5 million.
New Financial Rules
The Championship will adopt Squad Cost Ratio instead of Profit and Sustainability rules this summer, allowing clubs to spend up to 85% of income on football costs like transfer fees and wages. Excluding parachute payments, the division is relatively level. Bristol City (£40 million) and Norwich City (£39 million) top the non-parachute revenue list, with Birmingham City at £35.6 million not far behind.
Football finance expert Kieran Maguire noted: "A first-year parachute payment of about £50 million gives clubs like West Ham, Wolves, and Burnley a sizeable advantage, as 85% of that is £42.5 million on top of other income." These three are runaway promotion favorites, but with the play-offs expanding to eighth place in 2026/27, the competition behind them remains uncertain.
