The Independent Football Regulator has officially launched a "State of the Game" report, with a primary focus on the system of parachute payments.
These payments, currently worth approximately fifty million pounds in the first year after relegation, have been a point of contention for years.
The EFL argues that they distort competition in the Championship and create an unfair advantage for relegated sides.
Conversely, the Premier League maintains that the funds are essential to protect clubs from financial collapse due to the sudden drop in broadcast revenue.
The IFR has been granted legal authority to mandate the release of financial data from all clubs, signalling the biggest look into English football finances in history.
This review could lead to a forced redistribution of wealth if the Premier League and EFL cannot reach a mutual agreement on a new financial settlement.
For clubs currently fighting relegation, such as West Ham and Burnley, the outcome of this review will have significant long-term implications for their financial stability should they drop out of the top flight.
Source: DSG
