Key facts
- Premier League clubs are preparing to vote on a 10-year deal to provide approximately £1.5 billion in extra funding to the EFL.
- The proposal includes increasing the Premier League's transfer levy from 4% to 6%.
- Funding will be distributed on a sliding scale, starting below £100m in 2026-27 and rising to about £160m annually from year three.
- The deal also includes plans to reduce parachute payments and establish a £20m emergency fund for clubs in administration.
- A minimum of 14 Premier League clubs must vote in favor for the deal to proceed.
- The Independent Football Regulator can impose a financial settlement if an agreement is not reached.
Premier League clubs are poised to vote next week on a significant 10-year financial agreement that would distribute approximately £1.5 billion to their counterparts in the English Football League (EFL). This proposed 'New Deal' has been under negotiation for over three years and aims to establish a sustainable financial framework for clubs across the English football pyramid.
Key provisions of the deal include an increase in the Premier League's transfer levy from 4% to 6%, with the additional revenue contributing to the New Deal payments. For instance, Chelsea's recent £117 million transfer of Morgan Rogers would incur a levy of £7.02 million under the new terms, up from £4.68 million. The distribution of funds would be based on the Premier League's existing revenue ratio, meaning top-earning clubs like Arsenal, Chelsea, and Manchester City would be the largest contributors.
The funding is planned to be introduced on a sliding scale, beginning with less than £100 million in the 2026-27 season, increasing to over £130 million the following year, and then stabilizing at around £160 million annually for the remaining seven years. The agreement also entails a gradual reduction in parachute payments to relegated clubs and the creation of a £20 million emergency fund for EFL clubs facing administration. Furthermore, 20% of the redistributed funds would be mandated for investment in infrastructure, rather than being allocated to wages or transfer fees.
A vote requires the support of at least 14 Premier League clubs to pass, after which it would be formally presented to the EFL. However, further discussions are ongoing, and the confirmation of a formal vote on Thursday remains uncertain. The Independent Football Regulator (IFR), led by chairman David Kogan and chief executive Richard Monks, has the authority to impose its own financial settlement if the Premier League and EFL fail to reach an agreement, making a negotiated deal the preferred outcome for all parties involved. This potential agreement represents one of the most substantial changes to English football's financial structure since the Premier League's inception in 1992.