The Premier League has tabled a historic £1.8 billion financial support proposal to the English Football League (EFL) over the next decade. This initiative aims to resolve the ongoing conflict surrounding revenue redistribution among divisions.
The plan, dubbed the 'New Deal for Football', would effectively double the current solidarity payments to clubs in the lower three tiers. The proposal would increase EFL's share to around 17.5% of the Premier League's total broadcasting revenue, up from the current figure of approximately 11%, despite initial demands for 25%.
However, the Premier League has put forward tough counterconditions. The most significant being the complete abolition of the two-legged semi-finals in the Carabao Cup. Additionally, the Premier League insists on ongoing discussions about a swapping system involving three clubs between League Two and the National League.
To balance the budget, the Premier League plans to raise the transfer levy from 4% to 6%, with 15% of the additional funds earmarked specifically for infrastructure investment. The package also stipulates that these funds cannot be used to inflate player wages but should instead focus on increasing academy investments, scouting young talent, and establishing a £20 million rescue fund for clubs facing external administration.
Despite the optimistic outlook, discussions are currently marred by a £27 million disagreement. The sticking point revolves around the distribution ratio: the Premier League is advocating for the original 80-12-8% split among the Championship, League One, and League Two, while EFL is pushing for a 75-15-10% distribution to allocate more funds to the struggling clubs. They are also calling for a review of the agreement's terms in five years and for the missing £27 million to be addressed.
Officials from both leagues have remained tight-lipped as negotiations continue.
