Premier League understood to have offered £125m a year in additional EFL funding

The Government intends to give football’s new independent regulator powers to settle financial disputes between the Premier League and EFL.

The Premier League and its chief executive Richard Masters has made an offer of increased funding to the EFL (Mike Egerton/PA) (PA Archive)

The Premier League is understood to have offered £125million a year in additional funding to the EFL in a bid to end a long-running dispute over financial distribution between the competitions.

The leagues, along with the Football Association, are trying to agree a ‘New Deal For Football’ covering distribution, cost controls, calendar issues and work permits.

The PA news agency understands a £95m offer was made in December which has now been increased by a further £30m annually.

Premier League to the wider football pyramid to the end of the current broadcast cycle in 2025" data-source="Premier League">

The Government has warned a new independent regulator will have powers to settle the financial dispute between the Premier League and EFL through arbitration, although the regulator could still be at least two seasons away.

Approximately £450m will be provided to EFL clubs under an existing deal – excluding parachute payments – over the current broadcast cycle from 2022 to 2025. That is part of an overall package of support to the wider pyramid totalling £1.6billion to the end of the cycle.

The Premier League and EFL have declined to comment, with talks between the governing bodies ongoing.

The EFL has called for a 25 per cent share of pooled broadcast revenues between itself and the Premier League, the abolition of parachute payments which it says creates a cliff edge between the top flight and the second tier, and the introduction of merit-based payments at a ratio of two to one to be applied in the Premier League and the Championship.

Fair Game, a group which has called for the reform of football’s financial flows and supports the introduction of a regulator, described the new offer as “crumbs”.

“In a year, when we saw £100m spent on a single player, £45m given to Burnley in parachute payments and the Premier League’s TV deal pass £3bn a year – this deal is not even worth a moment’s thought,” Fair Game chief executive Niall Couper said.

This is simply a case of crumbs being thrown in the direction of the rest of the football pyramid

Fair Game chief executive Niall Couper

“The £30m represents just one per cent of that TV deal. This is simply a case of crumbs being thrown in the direction of the rest of the football pyramid.

“According to the EFL’s articles of association, the £30m would give Championship clubs £1m each, League One clubs £150,000 each and League Two clubs around £100,000 each – that is barely enough to cover clubs’ energy bills.

“This is just another reason why football’s financial flow needs to be in the hands of an independent regulator.”