The Premier League has issued a statement saying it is committed to a 'football-led solution' that will allow additional money to flow into EFL club coffers this season.
EFL clubs, including Wrexham, Swansea City, Cardiff City and Newport County, were warned they could face a wait of up to two years for a new financial settlement from the Premier League should they choose to trigger the Independent Football Regulator's 'backstop' provisions.
Premier League statement
The statement from the Premier League said: "At a Shareholders’ meeting today, the Premier League and our clubs continued discussions regarding a new strategic partnership with the EFL.
"Since a fair and generous proposal was formally offered to the EFL last month, discussions have continued between the leagues’ Executives, and it was presented to EFL clubs last week.
"The Premier League remains committed to concluding a football-led solution as soon as possible so additional money can flow to EFL clubs this season."
EFL talks and timeline
EFL representatives are in talks with their top-flight equivalents regarding a 'New Deal' for English football. Documents seen by the Press Association — which remain open to amendment as talks progress — indicate an increase in solidarity payments surpassing £1.5billion over the next decade compared with current arrangements.
Details of the Premier League's offer, which secured backing from its member clubs in July, were presented to the 72 EFL clubs last week. Those documents contained guidance on the timescales that would apply should EFL clubs ultimately decline the Premier League's offer and instead activate the IFR's 'backstop' powers to impose a resolution.
The EFL advised its member clubs that such a procedure could take between one and two years to complete, with the outcome "difficult to predict."
Regulator and deal terms
"That said, the IFR has very clear objectives in relation to sustainability," the presentation to clubs states. Both competitions will also be conscious of the expected publication next month of the regulator's 'State of the Game' review, which will provide a thorough analysis of English football's financial health, including an assessment of the impact of parachute payments.
Papers show that the Premier League's current 'New Deal' proposal includes a pledge to reduce parachute payments to relegated clubs by five per cent over six years. The offer also sets out amendments to the cost control mechanisms currently imposed on EFL clubs.
Amongst the terms of the deal is a stipulation that 15 per cent of solidarity funding received by clubs must be allocated for infrastructure projects, together with arrangements for the creation of a £20m 'lifeboat fund' for clubs entering administration.
The proposal also anticipates greater cooperation between the leagues on a number of important matters, including a united position on the Saturday 3pm blackout, the structure of the Carabao Cup, and the format of the EFL Trophy — which has recently secured fresh sponsorship after American sandwich chain Jersey Mike's agreed a five-year deal as title sponsor.
EFL clubs are expected to meet again within the next fortnight to continue talks on the proposals.
