Premier League Clubs Unable to Agree Terms for new EFL Funding

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The Pushback

The Premier League clubs’ inability to come up with a financial proposal to the EFL has provoked anger and frustration inside the game and across Westminster. In response, Premier League clubs have sighted concerns over the costs of the subsidy to the EFL, with reports of at least one Premier League club facing the prospect of having to borrow to fund its prospective share of the handout to the EFL this year.

Among reports that clubs at the lower end of the football league are set to miss out on millions of pounds, former Manchester United captain and co-owner of Salford City, Gary Neville, has criticised the Premier League for what he considers to be negligence towards the rest of English football.

A challenge for the upcoming Football Regulator

Monday’s vote was likely to have been the final opportunity for the Premier League clubs to reach an agreement before the UK government’s publication of the Football Governance Bill, which will pave the way for the establishment of a new independent regulator. The new regulator will be responsible to, amongst other things, ensure a fair distribution of money down the English football pyramid from the Premier League.

In response to the Premier League’s failure to deliver a deal, the EFL expressed its disappointment and said it would now look to the independent regulator to secure the sustainability of the football pyramid.

New Squad Cost Control measures

The Premier League seemed more focused on the replacement of the PSR by new squad cost control measures, which will limit the amount clubs spend on wages and transfer fees to a percentage of their turnover.

This follows a series of high-profile breaches of PSR by Premier League clubs. The matter involving charges being brought against Everton for breaches of PSR for the period ending 2021/22 has recently reached a conclusion. At appeal, Everton’s points deduction was reduced from 10 to 6. However, Everton and Nottingham Forest have been charged with further breaches of the PSR for the assessment period ending 2022/23, and the whole process must now be repeated with two separate disciplinary commissions, one per club.

The Premier League also faces a lengthy and complex battle with Manchester City who is accused of breaching 115 PSR over a period of 14 years.

If you require any advice on general sports law or the PSR, please contact our sports team