Transfer levy threat for top flight

The Premier League has until the summer to reach a new agreement on payments to the EFL and the football pyramid or risk the threat of a transfer levy and other tougher terms being imposed upon it by a new independent regulator.

The Government has given its support to a regulator backed by statute on Monday, as recommended by the fan-led review last November.

It is open to giving the new body backstop powers to impose a solution on the Premier League if it and the EFL have failed to make sufficient progress on carving up television cash before a white paper setting out further detail is published this summer.

Sports Minister Nigel Huddleston said: “The message to the Premier League is quite clear – they need to act sooner rather than later because, otherwise, (a settlement) will be forced on them through the regulator.”

The Government’s written response to the fan-led review, published on Monday afternoon added: “We have been pressing for a solution in this regard and although some progress has been made, it is disappointing that this appears to remain some way off.

“We will make an assessment on the likelihood of agreement for a football-led solution and will confirm whether there will be a role for the regulator in redistributing income when we publish the white paper.

“We welcome any further updates by way of agreed positions or proposals from football around redistributions in advance of that.”

The Government also argued that, given a regulator will ensure clubs in the EFL and elsewhere are better managed financially, there is “no viable argument” for the Premier League to resist a greater flow of funding down the pyramid.

One of the most controversial recommendations of the fan-led review was a transfer levy on Premier League clubs. Huddleston said such a levy was “potentially in the mix depending upon what the Premier League and others come up with”.

He added: “We want to keep the pressure on for the Premier League to come up with their own solution first.”