The Premier League has defended its use of parachute payments to relegated clubs in the wake of criticism by EFL chairman Rick Parry at a Parliamentary Committee.
Parry, the former chief executive of Liverpool, gave evidence to the Digital, Culture, Media and Sport Committee (DCMS) on Tuesday, where he told MPs "parachute payments are an evil that needs to be eradicated."
But a Premier League spokesperson has told Sky Sports News the payments are a "vital mechanism to give relegated clubs financial support" when they drop down to the Championship.
"Parachute payments give newly promoted clubs the confidence to invest in their squads to be competitive in the Premier League," said the spokesperson.
"They are also a vital mechanism to give relegated clubs financial support while adjusting to significantly lower revenues and having a higher cost base related to their playing squads.
"The Championship is a highly competitive league with attendances, viewing figures and revenues the envy of second-tier leagues around the world.
"We see no evidence that parachute payments distort performance at that level and are an essential part of this highly competitive environment.
"We also provide solidarity payments to every other EFL club - payments without parallel elsewhere in leagues around the world."
Clubs relegated from the Premier League finish in 10th place on average on their first season in the Championship, while it takes clubs an average of six years to get back into the Premier League after relegation.