Premier League pushes for £1.8bn EFL funding deal

n n

The Premier League says it remains committed to reaching an agreement with the English Football League (EFL) over a new funding deal “as soon as possible”.

n

A 10-year proposal, which would double solidarity payments to the 72 EFL clubs, was formally presented last week after Premier League clubs approved the agreement in July.

n

As reported by BBC Sport on Thursday, the proposed deal would provide an additional £1.8bn to EFL clubs, with part of the funding expected to come from an increase in the Premier League’s transfer levy.

n

However, the EFL has yet to accept the proposal, with negotiations between the two leagues continuing.

n

In a statement following a meeting of its clubs the Premier League said discussions had continued over a new strategic partnership with the EFL.

n

“Since a fair and generous proposal was formally offered to the EFL last month, discussions have continued between the leagues’ executives,” the Premier League said.

n

“The Premier League remains committed to concluding a football-led solution as soon as possible so additional money can flow to EFL clubs this season.”

n

If the two sides fail to reach an agreement, the Independent Football Regulator could intervene through its backstop powers and impose a settlement.

n

The proposed agreement would also involve scrapping the second leg of the Carabao Cup semi-final and introducing controls to prevent the additional funding from being spent on player wages.

n

The dispute over financial redistribution has continued for several years, following a fan-led review of football governance in 2021.

n

One of the main disagreements centres on parachute payments to clubs relegated from the Premier League.

n

The EFL argues that the payments distort competition and can encourage clubs to take financial risks in an effort to secure promotion.

n

The Premier League has maintained that parachute payments give relegated clubs the confidence to invest and help sustain the competition that generates revenue for the wider football pyramid.

n

In March 2024, government officials warned that a funding settlement could be imposed if the Premier League and EFL failed to reach an agreement.

n

The EFL has declined to comment on the latest discussions.

n n