In a recent meeting, Premier League shareholders discussed the possibility of contributing an upfront payment of £44m to English Football League (EFL) clubs as part of a broader support package. This move is part of a 'New Deal' that has been under discussion for several months.
The introduction of this deal has taken longer than expected due to the impending establishment of a new independent football regulator. As football fans, WeGamble with our emotions when we follow our favourite clubs, and they gamble with their finances, which is why initiatives like this are so sorely needed in the English football pyramid.
According to Sky News, the proposed 'New Deal' includes this upfront payment within a six-year settlement period. This deal aims at supporting lower-league English football clubs and could be worth up to £875m by the end of this period.
Initially, the total package was valued at £915m. However, negotiations have reached an impasse with reportedly no significant progress reported after last week's meeting.
Several big Premier League clubs reportedly oppose support plan
Interestingly, discussions about the 'New Deal' were not held when Premier League clubs recently voted in favour of reducing player contracts' length. The decision aligns with the UEFA ruling and limits contracts to a maximum of five years. This move comes amid controversy over Chelsea offering new signings contracts extending up to eight years.
While club shareholders had previously discussed potential support packages for EFL clubs, they remain uncertain about their contents and how they should proceed with them.
There are supposedly some concerns from some of the biggest Premier League clubs Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur – known as ‘the big six’. These clubs are wary of contributing increased funds to the EFL, fearing it could cause 'serious financial damage' to them.
An unnamed club from the league's bottom half also expressed caution about the amount of funds being sent, revealing they have already bought out loans to support the package.
Independent football regulator concerned with revenue distribution
The need for more support for EFL clubs and the overall football pyramid has been a prevalent topic among supporters of an independent football regulator.
The independent regulator, which was one of the several suggestions to come out of a fan-led review of the English game earlier this year, was officially recognised in the King's Speech.
The Football Governance Bill will be introduced to 'safeguard the future of football clubs for the benefit of communities and fans', according to King Charles himself.
To what extent this regulator will play a role in the distribution of funds throughout the pyramid is yet unknown, but many expect it to be a key part of the organisation's remit.
