EFL clubs in agreement over £50m bailout fund
THE long drawn-out negotiating between the EFL and the Premier League over a bailout fund may finally be reaching a conclusion.
The parties met on Thursday and it’s been reported that EFL clubs have agreed to accept an offer of a £50m for teams in League One and League Two.
It follows months of negotiations between the EFL and the Premier League, and after talks broke down several times, it appears the game may at last find a solution to the financial crisis caused by the Covid-19 pandemic.
The 72 EFL clubs met by division on Thursday to discuss the offer that had previously been rejected.
Clubs agreed last month that any bailout package should apply to all three EFL divisions, including the Championship.
The Premier League’s offer currently includes unconditional funding – a split between loans and grants totalling £50m – to clubs in League One and League Two.
Championship teams, however, have been invited by the Premier League to apply for hardship funds on a case by case basis.
It was this split that had caused the 72 to reject the offer when it was first made. But with an estimated 10 clubs in League One and Two struggling to make payroll in November and with increased government pressure after a confrontational session at the digital, culture, media and sport committee last Tuesday, that position has now changed.
The EFL confirmed its new position in a statement on Thursday evening.
It read: “EFL Clubs have today met by division and separately engaged in overwhelmingly positive discussions in respect of the proposed short-term rescue package currently being discussed between the EFL and League.
“The EFL membership have been united throughout the negotiation process that any support package must address the financial issues being experienced at all 72 Clubs before it could be considered in full and moved forward.
“The EFL does note the previously stated Premier League position that it would engage with any EFL Club, including those in the Championship, that is suffering severe financial losses due to the pandemic.
“Following a comprehensive debate in all three divisions, a collective agreement in principle was made to move forward and finalise the negotiations, with Championship Clubs making it clear today that they wanted to ensure their colleagues in League One and League Two received the proposed £50m financial support package to cover gate losses for
Premier 2019/20 and 2020/21 as soon as is practically possible.
“Championship Clubs also acknowledged that discussions in respect of the levels of support they will receive will remain ongoing.
“The EFL believes that today represents a significant step forward and is hopeful that a final agreement on the short-term rescue package across all three divisions can be reached imminently which will provide much needed support, clarity and certainty for all EFL Clubs at a time when they need it most.
“In addition to finalising the short-term financial issues, Clubs were today informed that the EFL will contribute fully in the Premier League’s strategic review to consider the future structure and financing of English football, and will hopefully have a direct and positive impact on a more sustainable EFL in the future.”