The Premier League shareholders met to address financial issues, and the EFL will not be pleased with the outcome.
Following their most recent meeting, Premier League clubs opted not to increase their financing for the EFL. England’s biggest and richest league has consistently donated money to the EFL’s three tiers as part of a commitment to growing football across the country, as well as to keep the Premier League from becoming too disconnected from the leagues below.
The Premier League currently sends £1.6 billion to lower levels of football over a three-year period, but there was hope that EFL clubs would benefit from the top tier’s massive TV revenue. However, the most recent Premier League conference, which included shareholders from the 20 teams, concluded without an offer of further investment in lower levels of football.
Instead, the Premier League will fund a new financial system to replace the current profit and sustainability model, which is based on Financial Fair Play. A Premier League statement read: “At today’s Premier League shareholders meeting, clubs agreed to prioritise the rapid development and implementation of a new league-wide financial system.” This will provide clubs stability about their future financial plans and ensure that the Premier League can maintain its current world-leading investment in all levels of the game.
“In addition, Premier League clubs reaffirmed their commitment to establishing a financially sustainable arrangement with the EFL, subject to club approval of the new financial system.
“The league and clubs also confirmed their continuous and long-standing commitment to the wider game, with £1.6 billion distributed to all levels of football throughout the current three-year cycle. 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 government has already stated that it wants the Premier League to do more for the game as a whole, suggesting that the leagues agree on a package rather than being obliged to accept one. A government insider told the Daily Telegraph about the lack of a new offer: “(It’s) 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 EFL has not responded and will address the matter at a board meeting.
The Premier League is expected to base its new financial model on the squad cost-to-revenue ratio outlined in UEFA’s Financial Sustainability Regulations.
