EFL chief Rick Parry lays bare Premier League and EFL’s startling money problems

English Football League chairman Rick Parry has warned that clubs face a £200million financial hole by September.

Parry had been called to give evidence to the Digital, Culture, Media and Sport committee on Tuesday about the impact of the coronavirus pandemic on sport, and he highlighted the particular difficulties facing the 71 clubs in his competition.

Asked in a worst-case scenario how many clubs might go out of business, Parry said: "That's a difficult one to answer.

"We are heading for a financial hole of about £200m by the end of September, cash hole, that we will need to fill. Clubs are stacking up creditors as well.

"We have a great deal of uncertainty around next season of course, the great undetermined matter being when we're going to return to play in front of crowds, which for the EFL is absolutely critical.

"We're much more dependent on revenue – and indeed much more dependent on the atmosphere generated by crowds potentially than the Premier League."

Parry also said the EFL expected three clubs to be promoted from the Championship to the Premier League, or "the lawyers are going to get wealthy".

There have been reports that top-flight clubs want to play out the season with the threat of relegation removed, but Parry said it would get very "messy" if that happened and warned it would be a breach of the tripartite agreement between the Premier League, the EFL and the Football Association.

"We expect three Championship clubs to be promoted – the Premier League are aware of our position on that. The Premier League expects three clubs to be relegated," he said.

Asked what would happen if the Premier League's position changed, Parry said: "The lawyers are going to get wealthy if that happens. There would be a degree of outrage from a number of clubs in our Championship, and it would be a breach of the tripartite agreement.

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