The Premier League and English Football League are nearing a deal that will bring significant changes for Wrexham, Cardiff City and Swansea City from the 2026/27 season.
The details emerged as the new Independent Football Regulator said the game is "standing on the edge of financial disaster". The IFR has told the top flight that they must reach an agreement with the EFL or face intervention that will force them to provide more money for the rest of the football pyramid.
State of the Game report highlights losses
The State of the Game report found that 94 per cent of English football's top 116 clubs - across the Premier League, EFL and National League - are loss-making. A significant number of clubs said they would cease to exist if their owners walked away.
The Premier League have agreed a deal they are willing to make with the EFL. The EFL have yet to rubber-stamp the agreement, but cohesion appears to be getting closer.
Proposed changes to payments and funding
The proposal will see solidarity payments more than double existing payments, but the amount each side receives will depend on their performance. There would also be a phased reduction in the size of parachute payments made to relegated Premier League sides.
Additional funding will be ring-fenced for infrastructure projects that advance sustainability requirements, and a lifeboat fund will be created to help prevent clubs from falling into liquidation. However, tighter financial controls will reduce the scale of losses in the Championship as teams chase promotion.
Regulator's six-point plan
The regulator has a six-point plan to safeguard the game:
- Revenue distribution should be reformed, but changes should focus on financial stability, not encouraging imprudent spending.
- Leagues, clubs and other stakeholders should take action to reduce financial losses.
- Action should be taken at National League level to ensure football governance matches the risk within the game.
- Clubs must improve how they manage financial risk.
- Clubs must show how they take fans' views into account.
- Clubs should improve corporate governance and make progress on boardroom and senior executive diversity.
IFR Chair David Kogan said: "At the heart of English football's success is a massive contradiction. While some of our clubs are among the richest and most competitive in the world, others are standing on the edge of financial disaster."
"Skyrocketing revenues have been outpaced by costs which in turn have pushed up debt, loss-making and an over-reliance on owner funding. A significant number of clubs that told us they would not survive if their owners walked away. This lack of resilience can no longer be ignored. Anyone reading this report can be in no doubt about the need for intervention."
"Football has always been bloody risky but now if you fail the failure is much harder to take because the numbers are so much bigger and that's where we come in."
