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 on the verge of voting on a significant financial redistribution deal that would provide approximately £1.5 billion in extra funding to the English Football League (EFL) over 10 years. This proposal aims to address the growing financial gap between the top-tier clubs and those in the lower divisions, a long-standing issue in English football.
Key elements of the proposed deal include an increase in the Premier League's transfer levy from 4% to 6%, which could generate substantial funds. For instance, a £117 million transfer fee would incur a levy of £7.02 million under the new terms. The funding distribution is planned on a sliding scale, beginning with less than £100 million in the 2026-27 season and escalating to about £160 million annually from the third year onwards. This structure aims to provide increasing support over the decade.
Beyond direct payments, the package reportedly includes a reduction in controversial parachute payments, which have been a point of contention. Additionally, a £20 million emergency fund is earmarked to assist EFL clubs facing administration, offering a crucial safety net. A minimum of 20% of the funding is also designated for stadium and infrastructure improvements at clubs outside the Premier League.
For the deal to be formally accepted, a minimum of 14 Premier League clubs must vote in favor of the resolution. Should the clubs fail to reach a voluntary agreement, the Independent Football Regulator, whose chair David Kogan and CEO Richard Monks are expected to attend the upcoming summit, possesses the legal authority to impose a financial settlement. Premier League CEO Richard Masters and chair Alison Brittain, along with their EFL counterparts Trevor Birch and Rick Parry, are scheduled to meet to finalize these discussions.