The Premier League has expressed its desire to reach an agreement with the EFL over a new funding deal that would see solidarity payments doubled for the 72 EFL clubs. The proposed 10-year offer was presented to the EFL last week and is expected to provide an additional £1.8bn to the lower-tier clubs.
The stalemate between the two leagues has been ongoing for years, with disagreements over lucrative parachute payments to relegated clubs being a major point of contention. The EFL believes these payments distort competition and increase the risk of reckless spending by clubs desperate to reach the top flight, while the Premier League sees them as essential for clubs to have confidence in investing and providing the competition that generates value shared with lower leagues.
The funding row has its roots in a fan-led review commissioned by the government in 2021 following several crises in the sport. The failed European Super League project and the collapse of Bury FC were among the issues highlighted, leading to calls for greater financial support for lower-tier clubs.
A new strategic partnership between the Premier League and EFL is being discussed, with talks ongoing despite the EFL's reluctance to accept the proposed deal. In a statement following a meeting of its clubs on Thursday, the Premier League emphasized its commitment to concluding a football-led solution as soon as possible.
The Premier League remains keen to avoid the imposition of a solution by the Independent Football Regulator via its 'backstop' powers. This could involve scrapping the second leg of the Carabao Cup semi-final and introducing controls to prevent excessive spending on player wages.
