Premier League clubs have officially approved a long-term funding proposal aimed at supporting the English Football League. This new initiative, which will be reviewed by EFL members, represents a critical step forward in the ongoing 'New Deal' negotiations between the two organizations.
What’s in the plan?
According to reports from Sky News, the proposal includes a 10-year timeframe, a proposed increase in the transfer levy, and a system for distributing funds based on each club’s financial performance. While exact terms remain undisclosed, the plan is expected to take effect starting with the 2026/27 season.
The Premier League has already committed to providing £1.6 billion in investment for the wider game and local communities over a three-year period. The proposed plan would build on this commitment by deepening the strategic partnership between the two leagues, with the goal of ensuring greater stability and support for EFL clubs. Under the new proposal, an additional £1.5 billion would be shared with EFL clubs over the next decade. Some of the money would be allocated to discrete funds, including a 'lifeboat' fund for clubs in immediate crisis and an infrastructure fund. To cover the extra costs, Premier League clubs have reportedly agreed to raise the transfer levy from 4% to 6%.
The path to agreement
The initiative gained momentum after a key meeting between senior executives from the Premier League and the EFL, alongside the Independent Football Regulator. The meeting took place last week and helped set the stage for the proposal’s formal introduction. The IFR, responsible for overseeing compliance with the deal, has been pushing for a timely resolution. Premier League clubs voted unanimously to support the so-called 'new deal for football' at a meeting on Thursday. They said in a statement that their clubs had 'unanimously voted to approve a funded proposal for a new strategic partnership with the EFL'. They said they would now 'look forward to continuing discussions with the EFL on progressing this proposal' and remain 'committed to finding a football-led solution'. The EFL have yet to officially receive the offer but acknowledged 'constructive' discussions with the Premier League and said their board would 'review the full detail of the proposal, including its potential benefits, implications and alignment with the long-term interests of our 72 clubs, ahead of further dialogue with the Premier League'. This is the first time that Premier League clubs have officially agreed a proposal that could be put to the EFL since they were first asked to give more money to the rest of the pyramid five years ago. The EFL has acknowledged the Premier League’s announcement and confirmed it will evaluate the proposal. Once received, the plan will be reviewed in detail by the EFL Board, which will assess its potential benefits and challenges for all 72 clubs. The EFL will then share the proposal with its member clubs to gather feedback and determine the next course of action. The spokesperson for the EFL stated that the board would carefully study the initiative to ensure it aligns with the long-term interests of the EFL.