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Liverpool are set to receive a substantial financial boost thanks to a Premier League rule tied to relegated clubs’ parachute payments.

Leeds United and Burnley clinched automatic promotion from the Championship this week, marking swift returns after relegation in 2023 and 2024, respectively.

Josh Brownhill’s two first-half goals fired Burnley to a 2-1 victory over Sheffield United at Turf Moor, a result that guarantees the Clarets’ return to the Premier League at the first attempt.

With this win, Burnley moved eight points clear of Sheffield United, making it mathematically impossible for the Blades to catch the top two with only two games remaining.

As a consequence, Chris Wilder’s side are now locked into third place and will have to pursue promotion through the playoffs this season.

Their promotions come at the expense of Leicester City, Southampton, and Ipswich Town, who face immediate relegation back to the second tier after just one season in the Premier League.

Under Premier League rules, clubs relegated to the Championship receive parachute payments—financial cushions spread over three seasons to offset lost broadcast revenue.

For 2024-25, these amounted to approximately £44 million in the first year, £36 million in the second, and £16 million in the third.

However, if a relegated club secures promotion before the payment schedule concludes, the remaining funds are reallocated to all 20 Premier League clubs according to widespread reports.

With Leeds and Burnley bouncing back immediately, the Premier League halts their parachute payments after just one season (2024-25 for Leeds, 2025-26 for Burnley).

The unspent portions—estimated at £52 million combined—are now distributed equally among top-flight clubs.

Each club, including Liverpool, could receive £2.6 million, a figure that rises to £3.5 million when including Southampton’s halted payments.

Parachute payments have long faced criticism for distorting Championship competitiveness?

Relegated clubs often retain financial advantages, enabling swift returns—evident in Leeds and Burnley’s promotions.

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