Brian Caldwell provides full insight into the leaked letter from the EFL earlier in the week.
On Wednesday, representatives from all EFL clubs gathered for another update regarding COVID-19 and what the future holds for the remainder of the season.
A letter to club officials was leaked the following day which provided an insight into what was discussed during that meeting.
Town CEO Brian Caldwell who was a participant in the meeting spoke to Shrewsweb today and was keen to focus on the Premier League's distribution of £125m throughout the EFL and National League. Brian highlighted that the numbers aren't quite as good as they first seem.
“I got word of this last Friday that the Premier League had made a statement that they were passing down 125m that was due for next season for EFL clubs and also the National League," said Brian. "However, no one really had any information on this at the time, although yesterday I got some more information and the amount isn't quite what I’d hoped it would be to be honest.
"You hear 125m and you start working out in your head 80% to the Championship and 12% to League One and Two clubs. Then you divide that up and it comes out that more than half of that money is actually parachute payments for clubs that have been relegated from the Premier League.
"When you then take into account that 80% of the money goes to the Championship you’re looking at over 90% of the money going elsewhere to the Championship."
Brian also clarified that this money is not new money it's money clubs would have received anyway, they are now just receiving it in advance.
"The way it works at the moment is the EFL get solidarity money which takes up half of the money. We get 1.4m approximately as central money from the EFL every year which is paid in two instalments in August and January but the solidarity money comes from the Premier League which makes up half of our central money from the EFL they are looking at half of that by front-loading to us, but the EFL haven’t actually received the money as of yet.
"So it’s not new money it’s just money that we would normally get for next season, so all be it it’s good to get any kind of money I certainly don’t want to seem ungrateful that the Premier League have offered to give us half of our normal solidarity money now rather than later but clubs are going to have a problem going forward as it might help clubs in the short term but in the long term we’ll have already had the money early so it will affect our income for next season."
For the full insight covering several other topics watch the full interview with Brian on iFollow.