Premier League pushes to end EFL funding standoff and unlock £1.8bn deal

The Premier League has made it clear that it wants the funding deadlock with the English Football League resolved as soon as possible. Top-flight clubs agreed a ten-year offer in late July that would double solidarity payments to the 72 EFL clubs, an additional package worth £1.8bn. But the EFL has yet to accept the settlement, talks remain ongoing, and the Premier League is now pushing to close the deal before the Independent Football Regulator steps in and forces a solution.

• The offer would double solidarity payments to the 72 EFL clubs over the next decade.
• The package is worth an additional £1.8bn and would be partly funded by raising the Premier League transfer levy.
• The EFL has not yet accepted the proposal and negotiations between the two leagues continue.
• If no agreement is reached, the Independent Football Regulator could use its backstop powers to impose one.

What the £1.8bn EFL funding offer includes

The ten-year package approved by Premier League clubs in July would double the solidarity payments currently received by the 72 clubs in the Championship, League One and League Two. To help fund the increase, the Premier League would raise the existing transfer levy applied to deals between clubs. The additional £1.8bn is designed to ease the financial strain on professional clubs across the lower tiers, many of which operate on extremely tight budgets and face constant pressure to stay afloat.

The proposal also comes with structural conditions. One notable element is the scrapping of the second leg of the Carabao Cup semi-finals, which would reduce the number of fixtures in that stage of the competition. There are also controls aimed at preventing the extra money from being spent directly on player wages, with the intention of channelling the funds toward sustainability, infrastructure and youth development instead.

Why the Premier League is in a hurry to get the deal done

The urgency is driven by more than goodwill. If the Premier League and the EFL cannot reach an agreement on their own, the Independent Football Regulator can use its backstop powers to impose a redistribution model. For the top flight, that would mean losing control over how its money is allocated and accepting a precedent of external intervention in the finances of the English game. Avoiding that outcome is now a central part of the Premier League's strategy.

The Premier League remains committed to concluding a football-led solution as soon as possible so additional money can flow to EFL clubs this season.

The mention of this season matters because EFL clubs need financial certainty now, not in a few years. Every delay in the negotiations pushes payments further down the road and leaves the most vulnerable clubs with less room to plan. That is why the Premier League has stressed both the timing and the need to remove any remaining obstacles quickly.

The roots of the Premier League and EFL funding dispute

The standoff dates back to the fan-led review of 2021, commissioned by the government after a series of crises in English football, including the failed European Super League project and the collapse of Bury FC. That review called for a fairer redistribution of the wealth generated by the Premier League down through the football pyramid. Despite the momentum it created, no funding redistribution deal has been reached since then.

The main sticking point is the system of parachute payments to relegated clubs. The EFL argues that these payments distort competition and encourage reckless spending among clubs chasing promotion to the top flight. The Premier League counters that parachute payments are essential to give clubs the confidence to invest, and that they help sustain the competitive intensity that ultimately creates the value shared with the lower leagues.

How the football regulator fits into the negotiations

The Independent Football Regulator has become a permanent presence in this dispute. Its role is not to replace the leagues but to ensure that the financial stability of English football does not depend entirely on voluntary agreements between them. In March 2024, government officials warned the Premier League that if it failed to agree a deal with the EFL, one would be imposed on them.

For the Premier League, the risk is twofold. Losing the initiative would mean having the terms of redistribution dictated by an outside body. It would also raise the political and reputational cost of a process that has already dragged on for years. The top flight's approach has therefore been to present the July offer as fair and generous, while keeping public pressure on the EFL to accept it.

What the 72 EFL clubs stand to gain

For clubs in the Championship, League One and League Two, the agreement would mean doubling the solidarity income they receive from the Premier League. Many of these teams rely on those payments to cover basic operating costs, from staff wages to stadium upkeep. The promise of an extra £1.8bn over a decade would provide significant breathing room for a part of English football that has endured administrations, insolvencies and club disappearances in recent years.

Beyond the money, the deal would signal a new balance of power in the English game. The EFL has spent years calling for a fairer share of the broadcasting and commercial income concentrated in the Premier League. A ten-year agreement, even if it does not meet every demand, would lock in a structural commitment and give clubs a stronger foundation for long-term planning rather than relying on short-term fixes.

Frequently asked questions about the Premier League and EFL funding deal