PREMIER LEAGUE BAIL OUT THE EFL
But there’s a catch to the deal...
English league One and Two clubs applying for additional funding from the Premier league will be limited to free transfers during next month’s window, under the terms of the £250million bailout finalised yesterday.
The lower-league clubs will also be restricted to paying fees of just £20,000 and £10,000 respectively for the whole of the 2021/22 season.
As revealed by MailOnline, a support package i ncluding a commitment to help secure a £200m loan for the Championship — and up to £50m in grants for league One and Two — has been agreed between the Premier league and EFl.
But lower division clubs seeking the full amount will have to sign up to onerous conditions that will seriously affect their spending plans for the next 18 months.
senior clubs in scotland are still waiting on clarification on any funding they will receive from the holyrood executive.
The UK government authorised a new £300m emergency rescue package t hat will provide assistance via low-interest loans and grants to several sporting bodies, women’s football and the lower tiers of the national league south of the border.
But the UK Department of Culture Media and sport say there will be no Barnett consequential funds for scotland because the devolved administrations have been provided with an upfront guarantee of £16billion over and above their spring budget to cope with the effects of Covid-19. The Premier league have committed to giving the bottom two divisions £15m up front, with clubs in league One and Two receiving minimum payments of £375,000 and £250,000 respectively. Another £15m will be distributed using a f ormula based on lost gate receipts up to December 31 this year.
A further £20m will be made available for clubs in the greatest financial need via a so- called monitored grant, which will be controlled by a joint Premier league and EFl panel and be subject to strict conditions.
Sportsmail has learned that any club in receipt of an additional grant will be unable to pay a transfer fee for one window and will face a cap on fees of £20,000 in league One and £10,000 in league Two until the end of next season.
Moreover, all clubs with at least 22 first-team players will only be able to make free transfers if an existing player leaves and if the new player’s wages do not exceed 75 per cent of those of the player he is replacing.
Any club that fails to comply will have to repay the grant to the EFl, who will pay the money back to the Premier league.
The top flight’s direct funding of the Championship is restricted to £15m, which the EFl will use to secure a £200m loan it will then distribute to the 24 clubs interest free. Those loans will be capped at £8.33m per club and must be repaid by June 2024.
The Premier league had initially refused to provide any funding for Championship clubs they view as rivals, particularly as many have wealthy owners. This led to the EFl rejecting their initial offer of £50m for the lower leagues in October on principle.
increased pressure from the government has led the Premier league to make an improved offer and end a stand-off that has been ongoing since May. EFl chairman Rick Parry welcomed the agreement yesterday, although he is likely to face dissent from some clubs unhappy with the distribution formula when three divisional meetings are held next week.
‘ Ou r over-arching aim throughout this process has been to ensure that all EFl clubs survive the financial impact of the pandemic,’ said Parry.
‘i am pleased that we have now reached a resolution on behalf of our clubs and this will provide much needed support.’