The Premier League has agreed on a proposal to reset financial distribution within English football's top four divisions, leading to an extra £1.5bn being shared across the pyramid over the next decade. Clubs voted unanimously to support the so-called 'new deal for football' at a meeting on Thursday, after discussions with the EFL. The offer will now be presented to the EFL's board for consideration.
Details of the Proposal
According to details originally published by Sky News, the Premier League's offer would run for 10 years and result in an additional £1.5bn being 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 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.
Official Statements
The Premier League said in a statement that its clubs had 'unanimously voted to approve a funded proposal for a new strategic partnership with the EFL'. It said it 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 has yet to officially receive the offer but acknowledged 'constructive' discussions with the Premier League and said its 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'.
Background and Implications
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 it sees 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.
