Football League clubs are set to benefit from the Premier League's recent broadcast deal under a 'rolling solidarity agreement', the Football League has announced.
The Premier League recently agreed a new three-year 5.136 billion-pound deal with Sky Sports and BT Sport and some of that money will now find its way to the Football league from the 2016-17 season onwards.
Under the new agreement, which is the first contracted link between the broadcasting revenues of the two leagues, clubs relegated from the Premier League to the Championship will only receive parachute payments for three seasons instead of four, with those clubs who do not receive the payments being awarded 30 percent of a third-year payment.
League One clubs will receive 4.5 percent of a third-year payment with League Two clubs getting three percent, and Football League chief executive Shaun Harvey has hailed the new deal.
"The eventual level of parachute and solidarity payments made to Football League clubs from 2016-17 will only be known once the Premier League has concluded the sale of its overseas rights," he said.
"Nevertheless, given the scale of its domestic agreement, it seems reasonable to expect that the eventual amounts paid to Football League clubs will be substantially greater than those we've seen previously and could amount to more than 100 million pounds per season.
"This agreement is hugely significant for the domestic game, not just for the Football League, but also the Premier League and the England team, both of which benefit from a vibrant and financially sustainable set of clubs beneath the top division that will continue to invest in the players and managers of the future."
The Football League also announced following its meeting at St. George's Park on Thursday that it had extended its own broadcast deal with Sky Sports by a further season to 2018-19 with an option for 2019-20.
Full terms of the deal were not disclosed but it was described in a statement as 'the most lucrative in the Football League's history' and will see Sky broadcast 148 games a season along with highlights and clips.
"Sky Sports have demonstrated, once again, their outstanding commitment to the Football League and its clubs," said Harvey.
"In extending this agreement we've delivered greater financial certainty to clubs for at least the next four seasons which I'm sure will be welcomed in boardrooms and by supporters across the country."