Premier League seeks quick deal with EFL over £1.8bn funding offer

WHAT HAPPENED

The Premier League says it wants to finalise a new funding agreement with the English Football League (EFL) "as soon as possible" after presenting a 10-year proposal last week that would double solidarity payments to the 72 EFL clubs. The offer is expected to provide an additional £1.8bn to EFL clubs and would be funded in part by an increase to the Premier League's transfer levy.

KEY CONTEXT

Top-flight clubs agreed on a deal in late July, but the EFL has not yet accepted the settlement and talks are ongoing. In a statement after a meeting of Premier League clubs, the league said: "Since a fair and generous proposal was formally offered to the EFL last month, discussions have continued between the leagues' executives." It added: "The Premier League remains committed to concluding a football-led solution as soon as possible so additional money can flow to EFL clubs this season."

Elements of the package reported by the Premier League would include scrapping the second leg of the Carabao Cup semi-final and introduce controls intended to stop the extra funding being spent on player wages.

WHY A DEAL MATTERS NOW

If the two leagues cannot reach an agreement, the Independent Football Regulator has "backstop" powers to impose a solution — an outcome the Premier League is keen to avoid. The long-running dispute over redistribution follows a government-commissioned fan-led review in 2021 and continued disagreement over parachute payments to relegated clubs. The EFL argues those payments distort competition and encourage risky spending, while the Premier League says they help clubs invest with confidence and sustain the competition that generates shared value.

WHAT HAPPENS NEXT

Negotiations between the leagues' executives are continuing. In March 2024, government officials warned that a deal could be imposed if the parties failed to agree, underscoring the limited window for a voluntary, football-led settlement.