relegated

The six-time Premiership title winners were relegated after going into administration two years ago with debts of £95m.

The EFL believes the payments - worth tens of millions of pounds to relegated clubs - distort competition and encourage reckless spending among Championship clubs.

It really is about how do we make sure relegated clubs are protected, but there’s fair competition within the Championship.

The landmark legislation will give the regulator powers to assess the impact of the Premier League's controversial 'parachute payments' to relegated clubs as part of a 'State of the Game' review every five years.

In September, Leicester City won an appeal against a possible points deduction for an alleged breach of financial rules, when an independent panel found the Premier League did not have the jurisdiction to punish the club as it had been relegated to the Championship when their accounting period ended.