PL does give away a fair bit of cash. I think they were talking about a billion to grassroots... though I'm never sure if that figure includes stuff like the parachute payments.
news.bbc.co.uk
Very very old, but shows the full 'virtuous circle' (all the newer ones oddly only have three entries, commercial success one omitted)
I remember it being said that the hardest thing to do was actually give away the money, because no matter how generous an offer you made, everyone always wanted more cash. I'd guarantee someone would be saying that even if they gave £15m per season to Championship Clubs, £10m a year to League One Clubs, and £5m a year to League Two clubs, at the next TV deal they'd be asking for more (bearing in mind a League Two club can run in half that £5m). That's a package worth 40% of the current TV deal. It's tricky, because there are 72 clubs who are looking for cash, not accounting for other grass roots projects, and even the FA.
I would agree on the most part that there is too much money in football, and at some point it's all going to tumble down... maybe the next TV deal wouldn't be so large, who knows. But at the same point, lower league clubs should be able to exist on their own without handouts... stuff like EPPP where promising kids end up in the best academies (that also tend to be Premier League club academies)... without good compensation does make this whole thing tricky.... In some regards maybe the ones that make it should have some kinda of legacy payment attached to the club that discovered the talent (for example, if Dele had come over on EPPP, every year we make a payment to Milton Keynes). Things like this would help out lower league teams, and also help us get the best kids into the best academies.
It's all really tricky, because if we give too much away, we make our own top teams less able to compete with other clubs in Europe, who may have less qualms about even distribution... look at La Liga, Barcelona and Real make most of the TV revenue
The new model sees ten per cent of TV rights revenue given to second-tier Segunda B, with the remaining 90 per cent divided so that 50 per cent is equally shared between the league’s 20 teams, 25 per cent allocated according to results across the previous five seasons, and the final 25 per cent distributed based on metrics such as the number of television subscribers and viewers per match.
This apparently had the effect of making them earn only 4:1, rather than 8:1. In the PL, 20th place took £95m in 17/18, and the winners took £150m. That's the equivalent of our 20th place finisher getting £37.5m.