A gathering of Premier League clubs on Monday concluded without reaching consensus on a ‘New Deal’ for EFL funding.
Last month, top-flight clubs were informed that if they failed to reach an agreement with the English Football League (EFL) regarding funding, one would be imposed upon them.
In a statement, the Premier League announced that its clubs had collectively decided to implement a new financial system across the competition.
Progress on reaching an agreement with the EFL is contingent upon the approval of this new system by the clubs.
This forthcoming financial system, likely modeled after UEFA’s regulations, will supersede the existing profit and sustainability rules (PSR), which currently allow clubs to incur a maximum loss of £105m over a three-year period.
Everton faced a deduction of 10 points, subsequently reduced to six following an appeal, for violating this rule during the period up to 2021-22. Both Everton and Nottingham Forest are also facing charges for alleged breaches in their financial accounts for 2022-23, with their cases awaiting adjudication.
Uefa’s regulations restrict expenditure on player and coach wages, transfers, and agent fees to a percentage of the club’s revenue, beginning at 90% this season and decreasing to 70% from 2025-26.
A vote on the implementation of the new regulations is anticipated to take place in June during the Premier League AGM.
It was anticipated that the Premier League would emerge from Monday’s meeting with concrete proposals to present to the EFL.
However, despite a willingness to reach an agreement, it has proven difficult to achieve due to ongoing concerns regarding how the overall package would be financed.
There is a sentiment among certain clubs that the “larger” members of the league should contribute a higher proportion.
The anticipated total amount, which is expected to be partly linked to future TV revenues, is approximately £900 million over a six-year period.
The absence of a deal is expected to be a prominent topic at the EFL’s board meeting on Thursday.
Premier League clubs convened on 29th February for another attempt to reach an agreement.
Following the lack of progress, Culture Secretary Lucy Frazer warned that the new Football Regulator would intervene if a deal was not reached.
In February, the UK government confirmed the establishment of a new independent body in English football. One of its objectives is to ensure that money is distributed fairly throughout the English football hierarchy from the Premier League downwards.