Football League clubs have "voted to increase the parachute payments made to clubs relegated to the National League," according to the BBC. The "new payments will come into effect" for the '16-17 season. The two clubs relegated currently "receive 50% of the equivalent Basic Award payment to League Two clubs." From next season this "will change to 100% in the first year following relegation and then 50% of the equivalent Basic Award payment, unless a club is promoted back to League Two" (BBC, 11/5). SPORTS MOLE's Tom Nightingale wrote Football League CEO Shaun Harvey revealed that this change was being made in an attempt to prevent clubs from falling into "financial trauma" after losing league status. Harvey: "In recent seasons we have seen a number of clubs suffer severe financial trauma following relegation from the Football League and in some cases fold altogether. As a result, it became increasingly clear that we needed to review existing arrangements and address our approach to managing the financial transition for clubs in these circumstances" (SPORTS MOLE, 11/5).
