New proposal could make teams in the relegation battle tremble

The Premier League and the English Football League (EFL), which consists of the Championship as well as Leagues One and Two, are to come to an agreement on a new financial package after two years of disagreement. The Premier League clubs are under pressure from both the EFL and the English government to agree on a financial package that will benefit the smaller clubs.

Daily Mail and Sky Sports is among those who have mentioned that the clubs in the Premier League met on Wednesday to discuss the new agreement.

“The Premier League clubs can finally agree on a financial package for the EFL worth several hundred million pounds,” writes the Daily Mail, adding that Wednesday’s meeting was an emergency call.

The proposals in the package are called “A New Deal for Football”, and Sky Sports writes that an agreement is finally approaching after the parties have been far apart since the start of the corona pandemic.

Relegation-threatened teams tremble

Part of the agreement referred to will involve a sharp reduction of the parachute payment that accrues to the clubs that are relegated from the Premier League. Last season, Sheffield United, Fulham and Bournemouth are said to have received £39 million in so-called solidarity funds, while the rest of the Championship clubs mostly only received £4.8 million each.

The EFL, led by former Liverpool chairman Rick Parry, has long called for an end to the parachute system because it gives relegated teams too much of an advantage in tier two. Parry was among those who supported the reviled Project Big Picture precisely because it included proposals for more money for the EFL.

Now it looks like e might get his way anyway. How much is involved in annual payments is not known, but the Daily Mail writes that it will be clubs in League One and League Two in particular who will benefit from the new agreement – if it is voted through.

The Times wrote this spring that the Premier League pledged to cough up £1.6 billion to the EFL over the next three years. That is about 10 percent of the league’s turnover. The EFL, for its part, has demanded 25 per cent – and received the government’s support. It is a proposal Premier League boss Richard Masters believes will be disastrous for the league.

The amount of money included in today’s proposal is not known, nor have there been any reports from Wednesday’s meeting. According to Sky Sports, the matter was only up for discussion and briefing on Wednesday. The vote itself will take place at a later date.

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