A meeting held on Monday among Premier League clubs has concluded without a resolution on a ‘New Deal’ for funding the English Football League (EFL).
This comes after a previous warning that the failure to reach a funding agreement would result in an imposed deal.
The Premier League announced that its clubs had agreed to introduce a new competition-wide financial system but stressed that progress with the EFL was contingent on the approval of this system by the clubs.
The primary stumbling block revolves around the allocation of funds and how the overall package, expected to be approximately £900 million over six years, would be financed.
Some clubs are advocating for larger members to contribute a higher percentage to the funding pool.
The new deal was set to cost Premier League clubs between £837m – £925m across 6 years according to Sky News.
For many struggling EFL clubs, their biggest income boosters are strong FA Cup runs and parachute payments.
What happens now?
Well, if all clubs vote in favour of the new proposal then it would mean extra money spread out across the Championship down to League 2.
The landmark £800m+ financial settlement would involve hundreds of millions of pounds being evenly distributed across the EFL for 72 clubs.
The EFL’s board meeting scheduled for Thursday will likely prioritise discussions on the absence of a deal and explore potential avenues for resolution.
This meeting follows the Premier League’s last attempt at reaching an agreement on February 29, where no progress was made, prompting a warning from Culture Secretary Lucy Frazer about potential intervention by the new Football Regulator.
In response to the ongoing negotiations, the UK government confirmed the establishment of a new independent body in English football back in February.
This body aims to ensure a fair distribution of funds throughout the English football pyramid, originating from the Premier League.
