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The Premier League's ‘new deal for football’ – an offer to increase funding to the EFL and end a long-running stalemate - can today be revealed by Daily Mail Sport.
Sources have disclosed that the top flight has proposed a £1.8bn uplift over 10 years that would effectively double the existing solidarity payment but it comes with a series of conditions – including scrapping the second leg of the Carabao Cup semi-final.
It can also be revealed that the two sides are currently around £27m apart on striking a deal with a growing confidence that the proposal, unanimously approved by top flight sides and shared with EFL clubs last week, is close to getting the green light and preventing the need for the Independent Football Regulator to step in.
However, it is understood that how the money will be divided between the three divisions remains a sticking point, with discussions ongoing.
The Premier League wants to retain the existing divisional split of 80 per cent to the Championship and 12 and 8 per cent to Leagues One and Two, while the EFL is seeking 75 per cent to the Championship and 15 and 10 per cent to the bottom two tiers. Should the EFL get its wish, it would mean Championship clubs would receive £20.6m per season, as opposed to £12.1m and that those in League One would go from £2.5m to £3.8m, with payments to League Two sides rising from £1.8m to £2.5m, all based on a mid-table finish.
The Premier League, which would raise the additional funding by increasing the transfer levy from 4 per cent to 6 per cent, wants to scrap the second leg of Carabao Cup semi-finals and has stipulated that the EFL must progress talks on a long-awaited three-up, three-down system from League Two to the National League as part of the proposal. It also says 15 per cent of the additional funds must be spent on infrastructure.
The Premier League and EFL are currently around £27million apart on striking a deal
Among a series of conditions, the Premier League wants to introduce controls to stop additional money going on increases in player wages and is keen to introduce a series of changes aimed at the development and recruitment of young players. According to sources, they want the additional money to principally reduce EFL clubs’ reliance on ownership funding rather than simply increase already-crippling player salaries.
The offer includes a ‘lifeboat fund’ of £20m for clubs entering administration, which would be aimed at ensuring essential creditors and operations are paid for while an affected club seeks a new owner, who would then repay any monies borrowed.
Sources have disclosed that the EFL, perhaps buoyed by the arrival of the Regulator and subsequent threat of a backstop, want the deal to instead be reviewable after five years and have decided to try and negotiate a higher figure. They have told clubs they are around £27m apart from the Premier League, which is mainly down to the amounts earmarked for Leagues One and Two - which they feel is hugely important as it would make its way to those whose need is the most pressing. They would also prefer to wait for the publishing of the State of the Game report, on October 12, which may well strengthen their negotiating position.
The offer, known as the ‘new deal for football’ equates to around 17.5 per cent of the Premier League’s broadcast rights deal. The EFL, which currently receives around 11 per cent, had been seeking 25 per cent. In total it would double the existing payment.
It is thought that some in the Championship have been left unimpressed at the EFL’s handling of the situation amid a belief that chairman Rick Parry has taken matters into his own hands and has not sufficiently consulted clubs. The deal has been on the table for six weeks and there is some unease over the EFL’s move to negotiate with the Premier League before first asking clubs, who were informed of the situation at a series of meetings last week, for their input.
EFL insiders say discussions have taken place in close consultation with clubs and with the full support of the Board, which includes representatives from six clubs. They also say any final decision will be down to the clubs. The Board is understood to have unanimously agreed to ask for the additional £27m. It is understood that they are not obligated to present the deal to clubs until they are ready to recommend it. They are also keen to ensure a united front and no divisional splits.
There is also concern over a delay in the amount of time taken to launch the search for a successor to highly-regarded chief executive Trevor Birch, who will depart his role at the end of the season. EFL sources say the process will allow for a full and comprehensive search which will allow for an appropriate handover period.
Both the EFL and Premier League declined to comment.
