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Post by rugbytoffee on Aug 9, 2022 17:44:37 GMT
The English Football League could soon see a huge increase in the amount of cash that flows down from the Premier League. At a hastily-convened shareholders meeting of top-flight clubs, set to take place on Wednesday, the Mail claims that the agreement of a new funding package is poised to be voted through. EFL clubs and prominent figures have long been calling for not only more money but the scrapping of parachute payments, which have been deemed as being counter-productive as teams in receipt of them benefit from an obvious financial advantage. Under proposals titled 'A New Deal for Football', the Mail says the plans will be discussed and that a compromise agreement could be reached for the first time. Earlier this year Rick Parry, chairman of the EFL, told the Telegraph: "We're totally committed to both - better regulation, but provided it goes hand in hand with a rethink on distribution." Parry says the Government, in deciding on how to back a fairer model, must keep clubs' community involvement in mind. Parry added: "We say that it is not just a footballing argument to change the model - it's a levelling up argument for Government. What the Week of Action reinforces is just how important all of our clubs are within their communities." Hinting that the EFL will fall in line with Uefa, whose rules state that a club's total expenditure on transfers, wages and agent fees cannot exceed 70 per cent of its revenue, he added: "We will be therefore refining in conjunction with the Premier League our own profit and sustainability rules, which don't work in the Championship because clearly, clubs are neither profitable nor sustainable." Parry has also previously called for the scrapping of parachute payments and asked for a fairer share of TV revenue for the 72 clubs. He wants the rights for the EFL to be sold alongside the Premier League, with the former getting 25 per cent of the revenue. Parry argued that this would help remove the “cliff edge” which exists between the top flight and the second tier. He said: "This is absolutely not about the EFL looking for charity from the Premier League, nor is it the EFL versus the Premier League. It's absolutely about the sustainability of every club, the purpose is making clubs sustainable and that needs two things – redistribution of revenues and better financial regulation, it's a very simple recipe." A number of clubs in the EFL have been beset by financial problems in recent years. The most high-profile incident is Derby County, who were in administration for ten months before finally finding a new owner. They also incurred points deductions and had a myriad of off-field issues, mostly related to their finances. Other clubs to have fallen foul of penalties after running into money problems include Sheffield Wednesday and Reading. www.mirror.co.uk/ |
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Post by rugbytoffee on Feb 20, 2024 16:46:15 GMT
The Premier League have called an emergency meeting with Everton and the other 19 clubs in a last-gasp attempt to finalise a landmark financial settlement with the EFL, according to Sky News. The report by Mark Kleinman was shared via their website, in which Everton were interestingly named among clubs notified about the meeting, with all called upon. It is mentioned later in the article that at least one club in the bottom half is understood to have suggested they may need to borrow money to fulfil their share in the handout – perhaps why Everton were mentioned earlier. The deal in question is projected to cost Premier League clubs between £837million and £925million over the next six years in additional funding to Football League clubs. An emergency meeting was called in a bid to get the deal over the line before the prospective independent regulator is established by government legislation – which has been the topic of heavy debate of late. Everton’s financial situation has been well-documented given their breaches of the Premier League’s profit and sustainability rules this season, hinting they could be one club suggesting they may need to borrow. www.goodisonnews.com/ |
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Post by rugbytoffee on Mar 11, 2024 18:06:07 GMT
The Premier League suffered a major set-back today with the clubs rejecting their proposal for a £900million financial settlement for the EFL. The 20 clubs have instead opted to prioritise agreeing changes to their Profit and Sustainability Rules ahead of voting on the so-called New Deal for Football, which may now be forced on them by the government. 'At a Premier League Shareholders’ meeting today clubs agreed to prioritise the swift development and implementation of a new League-wide financial system,' a Premier League statement read. This will provide certainty for clubs in relation to their future financial plans and will ensure the Premier League is able to retain its existing world-leading investment to all levels of the game.' The Premier League had been hopeful of persuading the clubs to vote on new funding arrangement for the lower divisions that was first agreed in principle almost two years ago, but suffered a major rebellion that will raise further questions over the authority of chief executive Richard Masters. Premier League clubs are sufficiently disgruntled with PSR regulations that have seen Everton and Nottingham Forest charged with spending breaches this year to demand that the top flight’s own financial arrangements are resolved before an offer is made to the EFL. In addition Leicester, Chelsea and Newcastle are also thought to be close to breaching the limits this season, while other clubs have been forced to restrain their transfer spending in order to comply. A number of clubs also remain unhappy at handing up to £8m-a-year each to the EFL without any control of how it is spent. The Premier League had specifically arranged two club meetings over the last fortnight to finally agree an offer for the EFL following a two-day strategy conference last month so failure to even put the matter to a vote is a major embarrassment for their leadership. The clubs’ resolve to rebel appears to have strengthened since the February meeting after which it was claimed that positive talks had taken place and the New Deal was close. The lack of a deal is a major blow for the EFL and Culture Secretary Lucy Frazer, who has repeatedly told football’s stakeholders that they must reach a deal themselves. The government may now be forced to intervene and the detail of the impending White Paper setting up a football regulator with so-called back-stop powers will be closely scrutinised. The Premier League’s new PSR regulations are likely to mirror the squad controls introduced by UEFA, which limit clubs competing in European competition to spending a set percentage of their revenue on wages, transfer fees and agent costs, a figure which will reduce to 70 per cent of revenue by the start of 2025/26 season. The clubs will also have to agree transition arrangements before a new system is introduced however, which is unlikely to be done this summer, so the New Deal has effectively been put on ice for some time. www.dailymail.co.uk/sport |
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