Premier League clubs fail to increase funding for EFL during financial negotiations

Following a shareholders’ meeting on March 11 in London, Premier League clubs did not offer increased funding to the English Football League (EFL) – stymieing hopes that arose after a preliminary meeting on February 29.

Prior to this week’s meeting, top-flight sources expressed optimism about a potential resolution, but discussions concluded without a funding offer. Premier League clubs prioritised addressing their own financial structure before engaging in talks with the EFL, aiming to establish a new financial system to replace the existing profitability and sustainability rules (PSR).

Previously, a proposed six-year deal allocating 14.75 percent of net media revenue to the EFL from the Premier League, estimated at around UK£900 million, was considered.

The UK government has urged football authorities to reach a mutual financial settlement but has warned of potential intervention through ‘backstop’ powers granted to the new independent regulator.

“At a Premier League shareholders’ meeting today clubs agreed to prioritise the swift development and implementation of a new league-wide financial system,” a Premier League spokesperson stated on Monday.

“This will provide certainty for clubs in relation to their future financial plans and will ensure the Premier League is able to retain its existing world-leading investment to all levels of the game.

“Alongside this, Premier League clubs also reconfirmed their commitment to securing a sustainably-funded financial agreement with the EFL, subject to the new financial system being formally approved by clubs.

“The league and clubs also reaffirmed their ongoing and longstanding commitment to the wider game which includes UK£1.6 billion distributed to all levels of football across the current three-year cycle. The Premier League’s significant funding contributions cover all EFL clubs and National League clubs, as well as women and girls’ football, and the grassroots of the game.”

The EFL declined to comment, with discussions anticipated at an upcoming board meeting. Government sources expressed frustration at the lack of progress, highlighting conflicting information provided prior to the meeting.

The Premier League is exploring a financial model aligned with UEFA’s Financial Sustainability Regulations (FSR), aiming to limit clubs’ expenditure on transfer fees and player wages to 85 percent of revenue, with penalties imposed for exceeding this ratio. However, approval of the new financial model remains uncertain ahead of the league’s annual general meeting in June.