Chester FC face an even tougher challenge to gain promotion in future seasons after the Football League agreed to increase parachute payments for relegated clubs.

At present those clubs receive a one-off parachute payment - worth £237,000 this season for Cheltenham Town and Tranmere Rovers - but that will change from 2016-17.

Clubs relegated from League Two will receive double the current payment for one season and an extra payment for the following season at the same level as now.

That means the battle for promotion from the National League will become even more competitive and increase the financial gulf between the division's big spenders and clubs such as Chester, who have one of the smaller playing budgets.

The decision has already garnered an angry response from Braintree Town chairman Lee Harding, who told the Non-League Paper the change was a 'reward for failure' and would be an 'absolute disaster' for non-league football.

Football League clubs voted for the change at an extraordinary general meeting late last week with the move designed to help relegated clubs deal with the drop in revenue.

The two clubs relegated from League Two currently receive 50% of the equivalent basic award payment to League Two clubs for one season, but from next season onwards will be paid:

  • 100% of the equivalent basic award payment made to League Two clubs in the first year following relegation.
  • 50% of the equivalent basic award payment made to League Two clubs in the second year following relegation (unless a club achieves promotion back to The Football League at the first attempt).

Shaun Harvey, chief executive of the Football League, said: "In recent seasons we’ve seen a number of clubs suffer severe financial trauma following relegation from The Football League and in some cases fold altogether.

"As a result, it became increasingly clear that we needed to review existing arrangements and address our approach to managing the financial transition for clubs in these circumstances.

"I would like to pay tribute to our clubs for taking this decision which is testament to their collective solidarity, given that the League's financial distribution formula means that the bulk of this money will come from funds that would otherwise be provided to Championship clubs, who are ultimately the least likely to benefit from it."

What do you think about the increase in parachute payments? Let us know in the comments below or tweet us @ChesterFC_Chron.