A significant financial proposal, dubbed the ‘new deal for football,’ has been put forward by the Premier League to the English Football League (EFL), aiming to resolve a protracted dispute over funding. The offer includes a substantial increase in payments to EFL clubs and proposes several structural changes to the game, potentially averting the need for external regulation.
Premier League’s Financial Proposal
Sources indicate that the Premier League has offered an uplift of £1.8 billion over a decade, which would effectively double the current solidarity payments made to EFL clubs. This enhanced funding is contingent upon the EFL agreeing to a series of conditions, notably the elimination of the second leg of the Carabao Cup semi-finals.
The top flight’s proposal, which received unanimous approval from Premier League clubs before being presented to the EFL, aims to bridge a financial gap currently estimated at £27 million. There is a growing optimism that an agreement is within reach, potentially preempting intervention from the newly established Independent Football Regulator.
Key Conditions and Sticking Points
While the overall financial commitment is substantial, disagreements persist regarding the precise distribution of these funds across the EFL’s three divisions. The Premier League advocates for maintaining the current allocation percentages: 80% to the Championship, 12% to League One, and 8% to League Two. Conversely, the EFL is pushing for a revised split of 75% for the Championship, 15% for League One, and 10% for League Two.
Should the EFL’s proposed distribution be adopted, Championship clubs could see their annual payments rise from approximately £12.1 million to £20.6 million. League One clubs might experience an increase from £2.5 million to £3.8 million, and League Two clubs from £1.8 million to £2.5 million, assuming a mid-table performance.
To generate the additional revenue, the Premier League plans to increase the existing transfer levy from 4% to 6%. Beyond the financial distribution, other conditions include the aforementioned scrapping of the Carabao Cup semi-final second leg and progress on implementing a long-discussed promotion and relegation system between League Two and the National League (a three-up, three-down model).
Furthermore, the Premier League stipulates that 15% of the newly allocated funds must be dedicated to infrastructure improvements within EFL clubs. Controls are also sought to prevent this additional money from being solely absorbed by increased player wages, with a focus on reducing clubs’ reliance on ownership funding and enhancing the development and recruitment of young players.
‘Lifeboat Fund’ and EFL’s Stance
The Premier League’s offer also incorporates a £20 million ‘lifeboat fund’ designed to assist clubs that enter administration. This fund would aim to cover essential creditors and operational costs while a club seeks a new owner, who would then be responsible for repaying the borrowed funds.
The EFL, potentially emboldened by the imminent arrival of the Independent Football Regulator and the prospect of regulatory intervention, appears to be seeking a deal that is reviewable after five years and is negotiating for a higher overall figure. The current £27 million deficit in negotiations is largely attributed to the differing views on the amounts allocated to Leagues One and Two, which the EFL considers crucial for clubs in greater need.
There is also an indication that the EFL may wish to await the publication of the ‘State of the Game’ report on October 12, believing it could strengthen their negotiating position.
Context of the Deal
The Premier League’s offer represents approximately 17.5% of its current broadcast rights revenue. This contrasts with the EFL’s historical position, which had sought around 25% of broadcast revenue, compared to the roughly 11% it currently receives. The proposed deal would, in effect, double the existing solidarity payments.
Internal EFL Dynamics
Within the Championship, there are reports of dissatisfaction with the EFL’s handling of these negotiations. Some clubs reportedly feel that Chairman Rick Parry has acted unilaterally without adequate consultation. The deal has been under discussion for six weeks, and some clubs have expressed unease about the EFL’s approach to negotiating before seeking their input.
EFL insiders, however, maintain that discussions have been conducted in close consultation with clubs and with the full backing of the Board, which includes representatives from six member clubs. They emphasize that any final decision rests with the clubs themselves. The Board is understood to have unanimously agreed to pursue the additional £27 million and is not obligated to present the deal to clubs until they are prepared to recommend it, aiming to ensure a united front.
Concerns have also been raised regarding the timeline for appointing a successor to Chief Executive Trevor Birch, who is set to depart at the end of the season. EFL sources suggest the search process will be thorough to ensure a proper handover.
Both the Premier League and the EFL have declined to comment on the ongoing negotiations.
