The Premier League has taken a step that could transform the relationship between the different tiers of English football by unanimously approving a proposal to redistribute financial resources to the English Football League (EFL). The so-called “New Deal for Football” includes an additional investment of £1.5 billion over the next ten years, an initiative aimed at strengthening the financial sustainability of clubs competing outside the top flight and reducing the economic disparities that have widened over time.
The decision comes after years of negotiations driven by concerns over the financial stability of many English football clubs. The Covid-19 pandemic exposed the economic vulnerability of numerous EFL teams, while the continued growth of Premier League revenues reignited the debate over the need for a fairer distribution of financial resources. Although the proposal still needs to be reviewed by the EFL board, the unanimous backing from Premier League clubs represents the most significant breakthrough in the process to date.
A new distribution model to strengthen English football
The plan approved by the Premier League includes an additional £1.5 billion for EFL clubs over the next decade. This funding would be added to the approximately £1.6 billion already distributed every three years to clubs and communities, significantly increasing the financial support available for the lower tiers of professional English football.
The proposal also introduces specific mechanisms to address different needs across the football pyramid. Part of the funding would be allocated to a rescue fund for clubs in financial crisis, while another portion would support infrastructure projects aimed at improving stadiums, training facilities and other essential sporting venues. The objective is to provide clubs with tools not only to overcome immediate financial challenges but also to strengthen their long-term sustainability.
Club consensus and the next steps of the proposal
To finance this increase in investment, Premier League clubs agreed to raise the transfer levy applied to deals between top-flight clubs from 4% to 6%. The measure required broad consensus among the clubs, particularly as some had previously expressed concerns about increasing the levy during the early stages of negotiations.
Following the unanimous vote, the Premier League confirmed that it will formally submit the proposal to the EFL for consideration by its board. Representatives of the organization that oversees the 72 clubs in the Championship, League One, and League Two said they will carefully assess the proposal’s benefits, implications, and long-term impact before continuing discussions with the Premier League. The process is also taking place under the oversight of the Independent Football Regulator (IFAR), which was created to safeguard the sustainability of the sport and has the authority to impose a settlement if the two parties fail to reach an agreement.
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