On Monday, there was a Premier League meeting in Central London. The agenda of the meeting was to discuss the newly proposed financial agreement for the English Football League (EFL) clubs. Richard Masters, the current CEO of the Premier League, chaired the meeting. Among those who were in attendance were Todd Boehly (Chelsea Co-owner), Amanda Staveley (Newcastle Co-owner), Karren Brady (CEO, West Ham United), and Daniel Levy (chairperson, Tottenham Hotspur), among other club representatives. The meeting started at 1 pm and only lasted 1 hour, 15 mins. In the end, the clubs failed to agree to the new financial agreement for the EFL clubs.
The New Funding Agreement for EFL
The Premier League, under the leadership of Richard Masters, has been trying to persuade the EPL clubs to agree to the new funding package for the EFL clubs. Currently, EFL clubs are getting 340 million pounds a year from the EPL clubs. The new funding agreement seeks to raise the amount to 500 million pounds annually for six years.
Everyone expected the EPL clubs to vote today. The voting rules stipulate that two-thirds of the clubs must agree to a significant decision. Therefore, 14 of the club’s 20 clubs needed to agree to the new financial agreement. However, the Premier League members did not hold any voting, for there was no agreement to support the new economic proposal.
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2 Reasons Why the Premier League Failed to Secure A Funding Agreement with EFL Clubs
1. EPL Clubs want a new Financial System
The EPL Clubs want to adopt a new financial system before they agree to any new deal to raise the funding for EFL clubs. The current profit and sustainability rules (PSR) system allows clubs to lose a maximum of 105 million Euros in 3 years. They will probably embrace UEFA’s model, which limits expenditures for players, coaches, transfers, and wages. The amount spent must be a percentage of the club’s revenue, starting at 90% this season and reducing to 70% from 2025 to 26.
The current PSR system is not favorable to the clubs. Currently, Chelsea and Nottingham are being charged with an alleged breach in their accounts for 2022-23. They are waiting for their cases to be heard.
2. They are Against the Football Regulator Imposed by the Govt.
The government is threatening to introduce a football regulatory body and pressuring the EPL to accept the new financial deal; if they refuse, the regulator will mandate it on the EFL clubs.
In contrast, the EPL Clubs have stood their ground, insisting that they will accept a new deal only if they can sponsor the EFL clubs once they are satisfied with their proposed new financial structures. They are lamenting that three-quarters of the EPL clubs are currently losing money.
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Conclusion
The Premier League is yet to agree to the new financial proposal to sponsor the EFL clubs. Things are at an impasse, for the Premier League has stood its ground. They currently give EFL clubs 340 million Euros, and the new deal wanted to raise the amount to 500 million Euros yearly for the next six years. All we can do is watch the space to see if EPL, EFL, and the government will find an amicable solution.
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