In a recent meeting, Premier League clubs failed to reach an agreement on a ‘New Deal’ for English Football League (EFL) funding. This comes after top-flight clubs were warned last month that failure to agree on a funding deal with the EFL would result in one being imposed on them.
A plan must be put in place to address financially, among other things, the disparity between the revenue generated by England’s top two divisions when it comes to EPL TV rights versus EFL TV rights.
The Premier League announced that its clubs had agreed to introduce a new competition-wide financial system. This new system, likely based on UEFA’s model, is set to replace the current profit and sustainability rules (PSR), which allow clubs to lose up to £105m over three years.
Despite willingness among clubs towards reaching an agreement with the EFL over funding issues, no consensus has been reached yet mainly because of disagreements over how this overall package should be financed. Some believe that “bigger” members of the league should contribute more significantly towards it.
The total sum tied partly with future TV revenues is expected to be around £900m spread across six years. However, without any tangible proposals put forward by the Premier League following Monday’s meeting as anticipated earlier, this issue will be high on the agenda during EFL’s board meeting scheduled for Thursday. In the absence of progress, Culture Secretary Lucy Frazer warned that a newly formed football regulator would intervene if a deal were not agreed.
The UK government confirmed the introduction of a new independent body in English football in February to ensure the fair distribution of money from the Premier League down the English football pyramid.
A statement from the Premier League emphasized its clubs’ commitment to “prioritise the swift development and implementation of a new league-wide financial system” which will provide certainty about their future financial plans and ensure that Premier League can retain its existing world-leading investment at all levels of the game.
Furthermore, it was added that Premier League clubs also re-confirmed their commitment to securing a sustainably-funded financial agreement with the EFL, subject to formal approval by clubs for this new financial system.
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