Following a shareholders’ meeting in London on Monday, no Premier League teams made any offers to enhance EFL investment.
Prior to the conference, which was termed as a’staging’ meeting on February 29, top-flight sources voiced hope that it would be decisive. However, the meeting ended without an offer, with the top flight clubs believing it is first necessary to devise a new financial system that will eventually replace the current profitability and sustainability regulations (PSR).
A six-year deal awarding the EFL 14.75 percent of net media revenue with the Premier League, estimated to be worth over £900 million, has previously been proposed, but Premier League clubs are now prioritising an agreement on their own financial model before engaging with the EFL.
The government has frequently stated that it wants the football authorities to reach a new financial settlement among themselves, but has warned that it may impose one on them through ‘backstop’ powers expected to be granted to the new independent regulator.
A Premier League spokesperson stated on Monday: “At today’s Premier League shareholders meeting, clubs agreed to prioritise the rapid creation and deployment of a new league-wide financial system.
This will give clubs financial stability and allow the Premier League to continue investing in all levels of the game Premier League teams have reaffirmed their commitment to a sustainable financial agreement with the EFL, pending formal approval of the new structure by clubs. The league and clubs also reaffirmed their continuous and long-standing commitment to the wider game, which includes £1.6 billion distributed across all levels of football over the current three-year period. The Premier League‘s substantial financing contributions benefit all EFL and National League clubs, as well as women’s and girls’ football and the grassroots of the game.”
The EFL declined to respond.
The EFL has declined to comment, but is due to address the issue at a board meeting later this week. One government source told the Daily Telegraph that the situation is “absolutely shambolic given they briefed over the weekend that it would definitely go to a vote, and they have been ‘quietly confident’ it would pass for the last 10 days”.
The Department for Digital, Culture, Media, and Sport (DCMS) has also been approached for comment. The Premier League is considering a system more closely aligned with the squad cost-to-revenue ratio outlined in UEFA’s Financial Sustainability Regulations.
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