Premier League eyeing ‘radical change’ in financial handouts to EFL

The Premier League wants financial handouts to the EFL awarded on a sliding scale based on sporting merit in a ‘radical change’ to the current structure.

Those in favour of the proposals believe the plans would reduce the gap between the Premier League and Championship, along with those between the lower divisions of the EFL.


According to the Times, the concept would remove the controversial parachute payments given to relegated clubs and mirror the structure used in the Premier League, in which sides receive higher funds based on final finishing position.

Under the current conditions the Premier League are committed to providing £1.6billion in funding outside the top flight over the next three seasons.

However, the Premier League was warned on Monday by the UK Government that it must agree a new deal ‘to deliver hundreds of millions of pounds more’ to the EFL as part of plans to improve financial sustainability within English football.

The Premier League has until the summer to reach an agreement with the EFL or will face the risk of changes being implemented by a new independent regulator, which could include a transfer tax in which a percentage of Premier League deals are redistributed down the pyramid.

The Government has given its backing to an independent regulator being introduced into English football, as part of several changes which have received positive backing following the fan-led review fronted by Conservative MP Tracey Crouch.

Amongst the key calls was for an independent regulator in a bid to combat issues with club owners in the wake of the European Super League fall-out and financial problems encountered with several lower league sides.

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