Preston director Peter Ridsdale bemoans Leeds United financial advantage following Premier League statement

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The former Leeds United chairman has given his verdict on the Premier League's failure to agree a deal with the EFL.

Preston North End director Peter Ridsdale insists English football will be 'finished' if Premier League parachute payments continue to give relegated teams a competitive edge.

The Premier League have come in for heavy criticism this week after failing to agree on a deal that would have seen up to £925million filtered down to the English Football League (EFL) over a six-year period. A meeting among its 20 member clubs on Monday decided to prioritise their own finances, with the 72 below them facing more uncertainty and the government threatening to impose a settlement fee.

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Ridsdale is currently executive director at Deepdale but is well-known among Leeds supporters, having been chairman for five years around the turn of the century. The local businessman was in charge for some of the club's greatest nights in recent memory but years of horrendous mis-management paved the way for administration and relegation as far as League One.

"All we want is to make sure we have a sustainable and competitive EFL and obviously you see the cliff-edge between the Premier League and the Championship, with the parachute clubs coming down getting something like £50m in the first year and £40m-odd in the second year, having got relegated," Ridsdale told BBC Radio 5 Live.

"We've got teams at the top of our division paying five times more in wages than we [Preston North End] are, and that's showing because they're at the top end of the Championship - and they're doing that based on parachute payments that are coming down from the Premier League.

"The top three teams are Leicester City, Leeds United and Ipswich, then Southampton are fourth. Three of those four came down last year and have got parachute payments. If we don't keep it competitive and sustainable, then English football is finished."

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Leeds received a reported £44m following relegation from the Premier League last season, and failure to return to the top-flight will see them handed a further £36m in year-two and then £16m in year-three. The goal of parachute payments is to avoid a repeat of Leeds' demise under Ridsdale, when they were forced into a fire sale of players in order to pay outstanding debts.

Under Ridsdale, Leeds funded lavish spending by borrowing around £60m against future gate receipts, essentially relying on their continued qualification for the Champions League which did not happen. Relegation to the Championship in 2004 further complicated matters and the club entered administration in 2007, dropping into League One in what is some of the club's darkest ever days.