Premier League Proposes Landmark 'New Deal for Football' with Increased EFL Funding
Top flight offers £1.8 billion uplift over 10 years, contingent on significant reforms including the scrapping of Carabao Cup semi-final second legs.
The Premier League has unveiled a proposal, dubbed the ‘new deal for football,’ aimed at significantly increasing financial support for the English Football League (EFL) and resolving a long-standing dispute between the two organizations. This offer includes a potential £1.8 billion increase in payments over a decade, which would effectively double existing solidarity payments.
The plan, unanimously approved by Premier League clubs and shared with EFL clubs last week, comes with several conditions. Among the key stipulations is the abolition of the second leg of the Carabao Cup semi-final. Additionally, the Premier League is seeking to introduce controls to prevent the additional funds from being used to inflate player wages, with a focus on reducing clubs' reliance on ownership funding and promoting the development and recruitment of young players.
Sources indicate that the Premier League and EFL remain approximately £27 million apart in their negotiations, though confidence is growing that an agreement can be reached, potentially averting the need for intervention by the Independent Football Regulator. A significant point of contention is the proposed distribution of the increased funds across the EFL's three divisions. The Premier League advocates for the current 80-12-8 percent split favoring the Championship, League One, and League Two, respectively. Conversely, the EFL is pushing for a 75-15-10 percent split, which would substantially increase payments to the lower leagues.
Under the EFL's proposed distribution, Championship clubs could see their annual payments rise from £12.1 million to £20.6 million, League One clubs 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. The Premier League intends to finance this increase by raising the transfer levy from 4 percent to 6 percent.
Further conditions attached to the Premier League's offer include progress on a three-up, three-down promotion and relegation system between League Two and the National League, and a requirement that 15 percent of the additional funds be allocated to infrastructure improvements.
The proposal also incorporates a £20 million 'lifeboat fund' designed to assist clubs entering administration, ensuring essential creditors and operations are maintained while a new owner is sought. The intention is for the new owner to repay any borrowed monies.
EFL insiders suggest that the league, possibly emboldened by the pending arrival of the Regulator and the threat of a default agreement, is seeking a reviewable deal after five years and aiming for a higher overall figure. They believe the gap of £27 million is primarily due to disagreements over the allocations for League One and League Two, areas they deem critical for clubs most in need. The EFL also indicated a desire to await the 'State of the Game' report, scheduled for publication on October 12, which may strengthen their negotiating position.
The Premier League's offer represents roughly 17.5 percent of its broadcast rights deal, an increase from the EFL's current share of approximately 11 percent. The proposal would effectively double the existing financial support provided to the EFL.
Internally, there are reports of some Championship clubs being dissatisfied with the EFL's management of the negotiations, with concerns that chairman Rick Parry has not adequately consulted member clubs. The deal has been under discussion for six weeks, and some clubs expressed unease about the EFL's approach of negotiating before seeking their input. EFL sources, however, maintain that discussions have been conducted in close consultation with clubs and with the full support of its Board, which includes representatives from six clubs, and that any final decision will rest with the clubs.
Concerns have also been raised regarding the timeline for appointing a successor to EFL chief executive Trevor Birch, who is set to depart at the end of the season. EFL sources stated that the process is designed to ensure a thorough search and an appropriate handover period.
Both the EFL and the Premier League declined to comment on the ongoing discussions.