Premier League Proposes Major Funding Boost for EFL
A new 'deal for football' could see payments double over ten years, but includes conditions like scrapping Carabao Cup semi-final second legs.
The Premier League has put forward a comprehensive proposal to significantly increase funding for the English Football League (EFL), aiming to resolve a long-standing stalemate. This 'new deal for football,' as it's being called, could inject £1.8 billion into the EFL over a decade, effectively doubling existing solidarity payments.
The top flight's offer comes with several stipulations, including the elimination of the second leg of the Carabao Cup semi-finals. Talks are ongoing, with both leagues reportedly around £27 million apart on finalizing the agreement. However, there is growing optimism that a deal could be struck, potentially averting the need for intervention by the Independent Football Regulator.
A key point of contention remains the distribution of the increased funds among the EFL's three divisions. The Premier League favors the current 80-12-8 percent split for the Championship, League One, and League Two, respectively. Conversely, the EFL is seeking a 75-15-10 percent allocation, which would substantially increase payments to the lower leagues. Under the EFL's proposed split, Championship clubs could receive £20.6 million per season, up from £12.1 million, while League One clubs would see their payments rise from £2.5 million to £3.8 million, and League Two clubs from £1.8 million to £2.5 million, based on mid-table finishes.
To finance this increased support, the Premier League plans to raise the transfer levy from 4 percent to 6 percent. Beyond the Carabao Cup change, the Premier League also requires the EFL to advance discussions on a three-up, three-down promotion and relegation system from League Two to the National League. Additionally, 15 percent of the new funds would be earmarked for infrastructure improvements.
The Premier League is also seeking to implement controls to prevent the additional money from being used to inflate player wages, with a focus on directing funds towards reducing club reliance on ownership investment. The proposal also includes a £20 million 'lifeboat fund' for clubs entering administration, intended to cover essential creditors and operations while a new owner is found.
Sources suggest the EFL, possibly emboldened by the impending introduction of the Regulator, wishes for the deal to be reviewed after five years and is pushing for a higher overall figure. The gap of £27 million is primarily attributed to disagreements over the amounts allocated to Leagues One and Two. The EFL's position may be strengthened by the upcoming 'State of the Game' report, scheduled for publication on October 12.
While the proposed deal represents approximately 17.5 percent of the Premier League's broadcast rights revenue, the EFL had been seeking 25 percent, having previously received around 11 percent. The current offer would effectively double the payments the EFL receives.
Within the Championship, there is some dissatisfaction regarding the EFL's handling of the negotiations, with concerns that Chairman Rick Parry has not sufficiently consulted member clubs. The deal has been under discussion for six weeks, and some clubs are uneasy 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 support of the Board, which includes representatives from six clubs, and that any final decision rests with the clubs themselves.
Concerns have also been raised about the timeline for appointing a successor to EFL Chief Executive Trevor Birch, who is set to depart at the end of the season. The EFL states that the process will allow for a thorough search and a suitable handover period.
Both the EFL and Premier League declined to comment on the specifics of the ongoing negotiations.