The Premier League has agreed on a proposal to reset financial distribution within English football’s top four divisions, one that would see an extra £1.5bn shared across the pyramid over the next decade.
- Premier League clubs unanimously approved a funded proposal for a new strategic partnership with the EFL.
- Proposal includes discrete funds, a lifeboat fund for clubs in crisis and an infrastructure fund.
- Clubs agreed to raise the transfer levy from 4% to 6% to cover costs; Manchester City were initially opposed.
- EFL has not yet officially received the offer and will review its details, benefits, and implications for its 72 clubs.
- The Independent Football Regulator exists with a backstop power to force a settlement if negotiations fail.
Clubs voted unanimously to support the so-called “new deal for football” at a meeting on Thursday, following discussions with the EFL. The offer will now be presented to the EFL’s board for consideration.
According to details originally published by Sky News, the Premier League’s offer would run for 10 years and see an additional £1.5bn shared with EFL clubs on top of the £1.6bn currently distributed to clubs and communities every three years. Some of the money would be put into discrete funds – a “lifeboat” fund for clubs in immediate crisis and one that is directed exclusively at infrastructure.
To cover the extra costs, Premier League clubs have reportedly agreed to raise the transfer levy applied to all top flight deals from 4% to 6%. The Guardian reported this week that Manchester City were initially opposed to increasing the levy.
The Premier League said in a statement that their clubs had “unanimously voted to approve a funded proposal for a new strategic partnership with the EFL”. They said they would now “look forward to continuing discussions with the EFL on progressing this proposal” and remain “committed to finding a football-led solution”.
The EFL have yet to officially receive the offer but acknowledged “constructive” discussions with the Premier League and said their board would “review the full detail of the proposal, including its potential benefits, implications and alignment with the long-term interests of our 72 clubs, ahead of further dialogue with the Premier League”.
This is the first time that Premier League clubs have officially agreed a proposal that could be put to the EFL since they were first asked to give more money to the rest of the pyramid five years ago. The Covid pandemic had revealed the precarious nature of finances at many EFL clubs and, in 2022, the then sports minister Nigel Huddleston said the British public were already “out of patience” over a failure to reach an improved settlement.
The belief that the Premier League’s riches could be shared more effectively across the game helped lead in part to the creation of the Independent Football Regulator, which came into being last year. The regulator has played no direct part in the negotiations, but has a “backstop” power to force a settlement if none is agreed.
While there is cautious optimism that a deal can now finally be agreed, it is not a guarantee that the EFL will accept the Premier League’s offer, with sources suggesting they see the proposal as being very similar to one that was mooted in 2023 but ultimately never approved by Premier League clubs. Both sides say they remain committed to ongoing dialogue.
