Premier League races regulator to seal £1.5bn EFL pact
Premier League clubs are preparing to vote on a proposed 10-year funding agreement with the EFL that could redistribute about £1.5bn and limit the risk of intervention by English football’s independent regulator.
Premier League clubs are targeting a vote next week on a landmark financial agreement that could provide about £1.5bn in additional funding to the English Football League over 10 years.The proposed settlement would create a long-term redistribution framework between the two leagues after more than three years of intermittent negotiations.Independent Football Regulator chairman David Kogan said: “It’s to everyone’s benefit for football to try to reach this understanding. But if the leagues can’t find a new deal, those powers will be enacted.”At least 14 of the Premier League’s 20 clubs must support the resolution. Further discussions are scheduled before the proposed meeting, meaning a formal vote next week is not guaranteed.The Premier League is aiming to reach a binding agreement by the end of August, before the regulator publishes its first State of the Game report in the autumn.One element would increase the levy on Premier League transfer fees from 4% to 6%, with the additional income contributing towards payments to EFL clubs.The bulk of the cost would be divided using a model linked to the Premier League’s broadcast revenue distribution ratio. That would leave leading clubs including Arsenal, Chelsea and Manchester City among the largest contributors.Payments could begin during the 2026-27 season, starting below £100m before rising above £130m in year two and towards £160m annually from the third year.The package would also gradually reduce parachute payments to relegated Premier League clubs and create a £20m emergency fund for EFL teams entering administration.EFL clubs would be required to invest 20% of the money they receive in infrastructure, limiting the amount immediately directed towards transfers and wages.Some figures within the EFL consider the current terms insufficient, leaving further negotiations necessary before the agreement can be formally accepted by both leagues.The regulator has backstop powers to impose a redistribution settlement if the Premier League and EFL cannot reach an agreement independently.A voluntary deal would allow the leagues to retain greater control over the structure and reduce the likelihood of an externally imposed model covering parachute payments and wider financial flows.Approval would represent the most significant restructuring of English football’s domestic finances since the Premier League was established in 1992.