The Premier League has tabled a revised deal to the English Football League (EFL) in an attempt to secure a deal over the sport’s future spending.
Sky News reports that the top flight made the proposal to the EFL last week in a deal that will see them earn over £125m extra every year, which is significantly more than the £95m per season offered in December.
The new deal was tabled during a meeting between executives from the Premier League and EFL, following months of negotiations over a ‘New Deal for Football’.
It was reportedly agreed during the meeting that the current system of parachute payments made by the top flight to teams relegated to the Championship will be reformed.
A new distribution model with merit payments awarded to clubs based on their performance in the EFL will also be introduced.
If the proposal is approved, the new funding will come in addition to already existing payments totalling hundreds of millions a year made by the English top flight to the lower divisions.
The Football Association (FA) is also said to be involved in the negotiations, and any agreement between both divisions will reportedly include strict conditions on cost control, especially for lower-league clubs.
The extra cash disbursed by the Premier League will also be spent on infrastructure rather than player wages.
The government published a white paper on the sport’s governance last month, highlighting a £4 billion difference between the combined revenues of top-flight clubs and those of Championship clubs in the 2020/21 season.
“There remains a clear need for football to reassess both the magnitude of revenue distributions and the way in which money is allocated between teams,” the government said following its white paper publication.
“The current approach has affected competitiveness and led to financial risk-taking by clubs – the persisting revenue disparities encourage clubs to take financial gambles in an attempt to achieve promotion or avoid relegation.
“This is accentuated by parachute payments, which can distort competition in the Championship and encourage greater financial risk-taking by clubs that are not in receipt of them.”
The latest phase of negotiations comes after news that a new independent regulator for English football is to be introduced.
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