information:filtering, structural:expansion, quality:correction
Relegation

Since its split with the Football League, established clubs in the Premier League have a funding disparity from counterparts in lower leagues. Revenue from television rights between the leagues has played a part in this.

Promoted teams have found it difficult to avoid relegation in their first Premier League season. One Premier League newcomer has been relegated back to the Football League every season, save the 2001–02, 2011–12, 2017–18 & 2022–23 seasons. In the 1997–98 and 2023–24 seasons, all three promoted clubs were relegated by the season's end.

The Premier League distributes a portion of its television revenue as "parachute payments" to relegated clubs for adjustment to television revenue loss. The average Premier League team receives £41 million while the average Championship club receives £2 million. Starting with the 2013–14 season, these payments are in excess of £60 million over four seasons. Critics maintain that the payments widen the gap between teams that have reached the Premier League and those that have not, leading to the common occurrence of teams " bouncing back " soon after their relegation.

Clubs which have failed to win immediate promotion back to the Premier League have seen financial problems, in some cases administration or liquidation. Further relegations down the footballing ladder have occurred for multiple clubs unable to cope with the gap.