The Premier League has offered EFL clubs £1.8bn in additional funding, and now it is waiting for an answer. The league made the proposal last week, and in a statement issued Thursday, it said talks are continuing while it pushes for a deal “as soon as possible.”
The offer is a 10-year package that would double solidarity payments to the 72 EFL clubs. It is expected to be funded partly through an increase in the Premier League’s transfer levy. The deal would also scrap the second leg of the Carabao Cup semi-final and include controls to stop the money from being spent on player wages.
The Offer on the Table
The Premier League’s statement followed a meeting of its clubs on Thursday. It said discussions have continued between the leagues’ executives since a formal proposal was offered last month.
“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,” the statement read. It also referenced the Independent Football Regulator’s “backstop” powers, which could impose a settlement if no agreement is reached.
The funding dispute has dragged on since a fan-led review in 2021. That review was commissioned by the government after the failed European Super League project and the collapse of Bury FC. No redistribution deal has been agreed, with disagreements over lucrative “parachute payments” to relegated clubs at the centre of the disagreement.
The Money at Stake
The £1.8bn offer would provide additional funding to EFL clubs over the next decade. The proposal would increase the existing solidarity payments, which currently benefit the 72 clubs below the top flight.
The deal is expected to be funded partly by raising the Premier League’s transfer levy. That means the money would come from a share of the fees paid when players move between clubs.
The package also includes controls to prevent the extra money from being spent on player wages. That provision addresses one of the EFL’s concerns about the distribution of funds.
Where the paper stands
The paper backs the 72 EFL clubs against the Premier League and its proposed funding terms, and is against any deal that would force those clubs to give up the second leg of the Carabao Cup semi-final or accept wage controls written by the league’s biggest clubs. The offer is a 10-year package that doubles solidarity payments, funded partly through a higher transfer levy, and it comes with conditions that look a lot like the big clubs trying to dictate how smaller clubs spend their money.
The dispute began with the fan-led review of 2021, commissioned after the failed European Super League project and the collapse of Bury FC. It has dragged on because the Premier League’s parachute payments reward clubs for dropping out, and the EFL says those payments distort competition. The Premier League says the payments are essential for investment and generate value shared with lower leagues — but the EFL’s concerns are real and deserve to be heard before the league’s biggest clubs get to decide how the money gets used.
The regulator’s backstop powers exist to settle this if the leagues cannot agree, and the government warned both leagues in March 2024 that a settlement could be imposed. The paper wants a deal that actually helps the smaller clubs, not one that locks them into terms set by the league above. The EFL should hold firm until the Premier League offers something that truly benefits the 72 clubs, rather than another arrangement that simply reinforces the status quo.
Key Facts
- Offer: £1.8bn in additional funding over 10 years
- Format: Doubling solidarity payments to 72 EFL clubs
- Funding: Partly through increased Premier League transfer levy
- Deal terms: Scrap second leg of Carabao Cup semi-final, wage-spending controls
- Dispute origin: Fan-led review, 2021, after European Super League and Bury FC collapse
- Government warning: March 2024, officials threatened to impose a settlement
- EFL response: No comment, talks ongoing
Timeline of the Dispute
| Date | Event |
|---|---|
| 2021 | Fan-led review commissioned by government, following the failed European Super League project and the collapse of Bury FC |
| Late July | Premier League clubs agree a deal |
| Last week | 10-year offer presented to EFL clubs |
| Thursday | Premier League statement issued, saying talks continue |
| March 2024 | Government officials warn both leagues a settlement could be imposed |
What Happens Next
The Premier League wants a football-led deal to avoid a regulator-imposed settlement. The EFL’s hesitation centres on parachute payments, which it sees as a threat to fair competition.
The EFL believes parachute payments distort competition and increase the risk of reckless spending. Clubs that drop out of the Premier League receive substantial payments to help them balance their books, but the EFL argues these payments can create an uneven playing field.
The Premier League has pushed back on those arguments. It has said the payments are essential for clubs to have confidence to invest, and that they provide the competition that generates the value shared with lower leagues.
In March 2024, the Premier League was warned by government officials that if it and the EFL failed to agree a deal, one would be imposed on them. The regulator’s backstop powers mean a settlement could be forced on the leagues if they cannot reach an arrangement themselves.
The EFL has declined to comment on the specifics of the offer.
The Premier League has shown it is willing to put money on the table. Whether the EFL accepts the offer will determine whether the dispute ends this season or drags on further.
The stakes are clear. A deal would deliver additional funding to EFL clubs this season. A failure to agree could trigger a settlement imposed by the regulator.
The Premier League has made its position clear. It is now up to the EFL to respond.
Source material: “Premier League keen to resolve EFL funding stalemate,” the BBC.
Get the Notebook.
The day's best stories and every fresh verdict, in plain English, in your inbox by seven. One email a day, no more.