An independent football regulatory body will review parachute payments as part of its State of the Game report

The report will look at the controversial multi-million pound Premier League payouts given to relegated clubs over a three-year period.

The English Football League (EFL) believes the payments – worth tens of millions of pounds to relegated clubs – distort the competition and wants them scrapped so they can get a bigger share of the wealth generated by the top flight.

But the Premier League says the payments are necessary to give club owners the confidence to invest.

The row is among the reasons why the two leagues have been unable to reach a new financial settlement that would see more money reach the bottom of the football pyramid, despite years of negotiations and pressure from politicians.

The regulator will have “support powers” ​​to mediate a financial settlement if the Premier League and the EFL continue to fail to reach an agreement, with the findings of the State of the Game report helping to form a view on how much the Premier League should redistribute.

“The game has never been examined in this way before… The State of the Game report will give football the clarity it deserves, so FIFA decisions can be made with confidence and for the long term,” said David Cogan, head of football’s independent regulatory body.

The regulatory body will be able to use legal powers to access information from clubs and competition organisers.

The State of the Game terms of reference will undergo a four-week consultation, with the final report scheduled to be published in 2027.

It will also examine equality, diversity and inclusion (EDI), fan engagement and heritage, including a review of the clubs’ current stadium protections, logos and colours.

However, ticket prices and the Video Assistant Referee (VAR) system are out of scope.