The ‘New Deal’ should see the collective up-front payment be made within a six-year settlement period to support teams in the lower leagues of English football, which could be worth up to £875m by the end of the term.
The New Deal has been heavily discussed between Premier League clubs for months and is thought to have taken a while due to the impending introduction of a new independent football regulator.
The initial value of the total package was £915m, but talks have hit a stalemate and Sky has revealed that this week’s meeting ended “without any meaningful progress”.
Discussions were not held regarding the New Deal when Premier League clubs finalised a vote in favour to reduce the length of player contracts to a maximum of five years to fall in line with UEFA ruling, amid the controversy of Chelsea offering new signings contracts as long as eight years.
However, club shareholders did discuss the elements of a potential support package to EFL clubs weeks prior but remain unclear what this may contain and how they should proceed with it.
Any potential deal would see funds be split between all 20 Premier League clubs, much like how TV revenue is distributed evenly, which will see clubs in the league get richer after a new £6.7bn deal was agreed recently, adding more pressure for clubs to distribute the new funds across the English football pyramid.
Sky News also cited the ‘big six’ of Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur, as being wary of the proposition of sending higher funds to the EFL as they believe it could cause “serious financial damage” to them.
One unnamed club from the bottom half of the league has also voiced its caution with the amount of funds being sent, as they shared they have already bought out loans to support the package.
More support for EFL clubs and the overall football pyramid has been a prevalent topic outlined by supporters of an independent football regulator, which was given the green light during the King’s Speech.
The Football Governance Bill will be introduced to “safeguard the future of football clubs for the benefit of communities and fans” stated the King, following the announcement last February to appoint an independent regulator following a fan-led review.