The Premier League and EFL must come to an agreement on funding and cost controls, or they will face intervention from a new regulatory body. The UK government has sent a strong message to the top leaders in football, urging them to come to a solution as they work on a new funding deal.
Premier League clubs such as Arsenal, Chelsea, and Tottenham Hotspur are planning to present a new proposal at the EFL’s upcoming meeting. However, the Culture Secretary Lucy Frazer has warned that regulators will step in if an agreement cannot be reached.
Frazer emphasized that the decision should be made by the leagues themselves, but that the government will bring in a regulator if necessary. EFL bosses are concerned about being pressured into accepting the Premier League’s terms and believe that an independent analysis by a regulator is necessary for a fair agreement.
Championship clubs are considering implementing a squad cost-to-revenue ratio like the one being introduced at the European level, while clubs coming down from the Premier League would have a larger budget. The proposed six-year deal would provide an additional £900 million in funding for EFL clubs.
Manchester Mayor Andy Burnham pointed to Everton’s situation as a reason for an independent regulator. Everton was penalized for breaking financial rules, but Frazer clarified that the regulator’s role would not involve cases like Everton’s.
Frazer stressed the importance of maintaining the Premier League’s global reputation. She noted that the regulator’s focus would be on financial stability, not on intervening in specific cases such as points deductions for rule violations.
