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EFL clubs say failure of Premier League clubs to reach new funding deal a ‘setback’

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The plan for an independent regulator in English football was recommended by a fan-led review in 2022

The English Football League says the Premier League’s failure to reach a decision on a ‘New Deal’ for the league’s funding is a “setback”.

The EFL says action from football’s Independent Regulator is “more important than ever”.

It added it is “disappointed” at the league’s “repeated failure” to put forward a new offer.

“Whilst it [a new funding offer] has been expected on a number of occasions, the lack of positive progress once again demonstrates how difficult an issue this is for football to address, without independent input,” the EFL’s statement said.

“The latest development represents a further setback, and the League now awaits a formal update from the Premier League as to how it proposes to re-engage on its latest commitment to deliver ‘a sustainably funded financial agreement with the EFL’.”

Top-flight clubs were last month told that failure to reach a funding deal with the EFL would mean a settlement being imposed on them.

It had been expected the Premier League would emerge from Monday’s meeting with tangible proposals to put forward to the EFL.

But, despite a willingness to reach a deal, it has remained elusive amid continuing issues over how an overall package would be paid for.

After no progress was made when the Premier League clubs last met on 29 February, Culture Secretary Lucy Frazer issued her warning that the new Football Regulator would intervene if a deal was not agreed.

Plans for a new independent regulator were announced by the government in 2023, and Frazer has previously said it would be introduced “in this Parliamentary session”.

“It is now more important than ever that the Independent Regulator is provided necessary powers to secure the long-term sustainability of the pyramid,” the EFL’s statement said.

“The EFL has repeatedly said that financial redistribution coupled with enhanced cost controls are needed to help achieve its over-riding objective of making EFL Clubs financially sustainable and competitive, so that they can continue to serve their supporters and communities long into the future, no matter what level of the pyramid they play in. ”

Mark Palios, executive chairman of League Two club Tranmere Rovers and a former chief executive of the Football Association, told BBC Radio 5 live: “This is a classic example of the fact the game cannot govern itself.

“A bad deal is worse than no deal and the new deal at this point in time should be left for a regulator.”

‘This could drag on for years’ – Analysis

BBC sports editor Dan Roan

The fallout from the collapse of the Premier League’s proposed improved funding deal for the football pyramid, amid splits between the top-flight clubs, is now intensifying.

On the day the EFL issued its response, the increasingly bitter row also reached parliament, with Labour challenging the government to finally introduce the Football Governance Bill that was promised last year, and which would establish an independent regulator with powers to impose a settlement on the game.

The government responded by reiterating its commitment to the ombudsman, and said legislation would be tabled “shortly”.

But with some Premier League clubs thought to be prepared to take legal action if forced to pay more to the lower leagues, this increasingly bitter dispute could be set to drag on for years.

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