Premier League offers EFL $154 million/year in additional funding
The Premier League has made an offer of over $150 million per year in additional funding towards the EFL, according to Sports Pro Media. The money would go towards distribution, cost controls, calendar issues and work permits. At the same time, it may quell some of the monetary frustration between the top flight and the lower leagues.
The Premier League’s offer to the English Football League (EFL) for additional funding in December was only worth $117 million per year. Most of that money comes from broadcast revenue. However, as helped by worldwide deals, the Premier League’s broadcast revenue is vastly higher than the rest of the EFL. For example, the NBC deal with the Premier League is worth $433 million per year.
To bridge that gap, the Premier League and the EFL are seeking a ‘New Deal for Football,’ which this payment would answer. However, there are differences with how much this deal should be and what it should include.
For example, the EFL has a number of criteria it wants to change in this new deal. That includes a 25% share in pooled broadcast revenues between it and the Premier League. Also, it wants to eliminate parachute payments. These are payments made to relegated clubs from the Premier League that last three years after relegation.
Premier League additional funding likely not enough for EFL
Sports Pro Media talked to Fair Game, a group in support of reforming soccer’s financial structure and adding a regulator. Fair Game called this offer from the Premier League for additional funding “crumbs” in the grand scheme.
“In a year, when we saw [$123 million] spent on a single player, [$55 million] given to Burnley in parachute payments and the Premier League’s TV deal pass [$3.6 billion] a year – this deal is not even worth a moment’s thought,” Fair Game chief executive Niall Couper told Sports Pro Media.
“According to the EFL’s articles of association, the [$37 million] would give Championship clubs [$1.25 million] each, League One clubs [$185,000] each and League Two clubs around [$123,000] each – that is barely enough to cover clubs’ energy bills.”
Couper said an independent regulator would help in that regard to balance out the funding. An independent regulator is coming. However, the UK government said this entity to settle financial disputes could still be at least two years away.
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