The Premier League has approved a plan to restructure how money is distributed among the top four tiers of English football, potentially providing an additional £1.5bn to clubs throughout the pyramid over the next 10 years.
At a meeting on Thursday, clubs unanimously backed the proposed “new deal for football” following talks with the EFL. The proposal will now be submitted to the EFL board for review.
Based on details first disclosed by Sky News, the offer would remain in place for a decade and provide EFL clubs with an extra £1.5bn, in addition to the £1.6bn currently allocated to clubs and community initiatives every three years. Part of the funding would be reserved for specific purposes, including a “lifeboat” fund for clubs facing urgent financial problems and a separate fund dedicated entirely to infrastructure.
To finance the increased contribution, top-flight clubs have reportedly agreed to raise the levy on Premier League transfers from 4% to 6%. Manchester City was reportedly among the clubs that initially resisted the proposed increase.
In a statement, the Premier League said its clubs had “unanimously voted to approve a funded proposal for a new strategic partnership with the EFL”. It added that it would “look forward to continuing discussions with the EFL on progressing this proposal” while remaining “committed to finding a football-led solution”.
Although the EFL has not yet formally received the offer, it confirmed that “constructive” talks had taken place with the Premier League. Its board will “review the full detail of the proposal, including its potential benefits, implications and alignment with the long-term interests of our 72 clubs, ahead of further dialogue with the Premier League”.
This marks the first occasion on which Premier League clubs have formally approved a proposal that can be presented to the EFL since calls for greater financial support across the football pyramid began five years ago. The Covid pandemic exposed the fragile financial position of many EFL clubs, and in 2022 the then sports minister Nigel Huddleston warned that the British public was already “out of patience” with the lack of progress toward a better agreement.
The argument that top-flight revenues should be distributed more effectively throughout English football contributed to the establishment of the Independent Football Regulator, which began operating last year. Although the regulator has not participated directly in the negotiations, it retains a “backstop” authority that allows it to impose an agreement if the parties fail to reach one themselves.
There is cautious hope that an agreement may finally be reached, but the EFL is not certain to approve the Premier League’s offer. Sources indicate that the organisation considers the plan broadly comparable to a proposal discussed in 2023 that top-flight clubs ultimately failed to endorse. Both parties maintain that they are committed to continuing negotiations.
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