Shropshire Star

EFL thrashing out new deal with Premier League

The EFL says “several important issues are still to be resolved” before a new deal on cash distribution, cost controls and calendar can be agreed with the Premier League.


EFL executives talked their 72 member clubs through a draft proposal from the top flight at a meeting yesterday.

Clubs were given forecasted figures of additional funding, based on a formula where it is understood the EFL would ultimately receive 14.75 per cent of the net media revenues earned by itself and the Premier League.

Sky News reported last week that Premier League clubs were told the extra funding was forecast to be £88million immediately, rising to £190m in six seasons’ time. The level of funding is understood to be agreed, with the key issue still to be resolved surrounding cost controls.

It is understood the proposal that clubs relegated from the Premier League and in receipt of parachute payments would operate a higher squad cost to revenue ratio than non-parachute clubs is part of that issue.

Indicative discussions were also held around the calendar. With the success of the Premier League set to be directly tied to the funding the EFL receives, there is an acceptance there may have to be concessions in order to keep the top flight’s product strong.

This could mean the scrapping of FA Cup replays and the second leg of League Cup semi-finals, with UEFA competitions set to significantly expand from next season.

The EFL said in a statement: “A draft proposal from the Premier League was examined in full, as clubs were given information on the structure of a potential future financial arrangement for them.

“An appraisal of conditions linked to future funding including cost controls, distribution mechanics, the football calendar and the impact of the Government’s proposed Independent Football Regulator (IFR) as part of the Football Governance White Paper, was also provided to clubs.

“A representative of the Department for Culture, Media and Sport was in attendance to offer an update on the establishment of the IFR so that clubs could consider all relevant matters together.

“As several important issues are still to be resolved, it was made clear at the meeting that nothing has been agreed with either the Premier League or its clubs.

“As such EFL clubs were not required to vote or take a decision on any matter, but instead held a proactive debate on the current status of the discussions.”

The statement added that targeted consultation would now continue with all clubs in smaller groups, with all clubs’ views collated to inform the discussions with the Premier League.

It concluded by stating the EFL’s desire to reach “a speedy and satisfactory conclusion to improve the financial health of EFL clubs”.