Premier League and EFL funding talks narrow to £27m gap
The EFL has indicated it would accept a new financial settlement if the Premier League increases additional annual solidarity funding from £180m to £207m, with the extra money reserved for Leagues One and Two.
The Premier League and EFL are moving closer to a new financial solidarity agreement, with an additional £27m a year for Leagues One and Two emerging as a central condition for securing lower-league support.The EFL has indicated it would accept the proposed ‘New Deal for Football’ if the Premier League raises its latest offer of £180m in additional annual payments to £207m, although the agreement’s duration and other details remain unresolved.The Premier League previously stated: “Since a fair and generous proposal was formally offered to the EFL last month, discussions have continued between the leagues’ Executives, and it was presented to EFL clubs last week.“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.”The latest reported proposal would run for seven years and increase solidarity funding to 14.7 per cent of the Premier League’s media-rights income, following an initial formal offer made in July.The EFL continues to seek a five-year agreement, having opposed the original 10-year term, while clubs in Leagues One and Two want the additional £27m protected for their divisions.The dispute also concerns how funding is allocated within the EFL, with the Premier League’s proposal retaining an 80/12/8 split between the Championship, League One and League Two.The EFL has sought a 75/15/10 distribution, directing a greater proportion towards the lower two divisions, where smaller increases can have a substantial effect on club budgets.The proposed Championship distribution includes a 1.75:1 merit ratio, meaning the highest-finishing club would receive a central allocation worth 1.75 times that of the lowest-finishing club, prompting concerns among some teams about a new financial gap within the division.Any revised Premier League offer requires a fresh mandate from its clubs, with chief executive Richard Masters expected to take the emerging proposal back for approval.Negotiations are taking place alongside publication of the Independent Football Regulator’s first draft ‘State of the Game’ report in Manchester on October 13, which is expected to highlight debt, widespread losses and the need for more funding across the pyramid.IFR chairman David Kogan has encouraged the leagues to reach their own settlement, warning that invoking the regulator’s backstop would not necessarily secure a better outcome for EFL clubs and could take up to two years.Speaking previously about a negotiated agreement, Kogan said: “Going forward, it’s to everyone’s benefit for football to try to reach this understanding.”The wider package involves more than solidarity payments, with negotiations also covering squad cost rules, continued support for relegated clubs and changes intended to provide more senior playing opportunities for Premier League academy players.Parachute payments, described in the negotiations as Financial Stability Payments, remain a significant point of contention because of their effect on the financial balance between recently relegated clubs and their Championship competitors.Both leagues declined to comment on the latest discussions, leaving the additional funding, distribution formula and agreement length subject to further negotiation and approval.