£250m fund agreed for EFL clubs
THE Premier League has agreed to provide a £250million bailout package for EFL clubs.
The EFL board voted this morning to take the money on offer from the Premier League, which will be available immediately to address the immediate financial challenges caused by the Covid-19 pandemic.
The package includes £50m in the form of a grant and monitored grant payments for League One and Two clubs and an interestfree £200m loan facility for Championship clubs.
The EFL say: “The Premier League has agreed to provide a payment commitment of up to £15m to cover interest, arrangement fees and professional fees to allow the EFL to secure a £200m loan facility that it will then on-lend to Championship clubs interest free.”
Listing the details, the EFL continue: ●●THE loan facility is provided to support clubs in the Championship to meet PAYE liabilities up to the end of 30 June 2021. ●●LOANS are capped at £8.33m per Championship club with monies received to be repaid by June 2024 using Premier League solidarity receipts or other central Premier League or EFL Distributions. ●●THIS fund is not available to any club in breach or suspected breach of EFL Regulations and clubs will again need to submit evidence in their applications to club eligibility. ●●ANY club in receipt of a loan payment as detailed will be required to continue to maintain compliance with the EFL’s financial regulations.
Rick Parry, EFL chair who has pushed hard for the bailout, says: “Our overarching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.
“I am pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.”
The agreement ends a long-running stand-off between the Premier League and EFL, which has gone on since May.
It comes after the government left football out of its £300m bailout package for other sports in the country last month.
“The Premier League is a huge supporter of the football pyramid and is well aware of the important role clubs play in their communities,” said Premier League chief executive Richard Masters.
“Our commitment is that no EFL club need go out of business due to Covid-19.
“All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.
“We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times.”