Premier League clubs have agreed to a landmark £3.5 billion funding proposal for the English Football League (EFL), aiming to enhance financial stability across English football. This agreement marks a significant step in strengthening the financial framework of the sport.
The proposal, which has been under negotiation for over three years, outlines a 10-year plan to redistribute funds from the Premier League to the EFL. A key component is increasing the Premier League's transfer levy from 4% to 6%, with annual payments to EFL clubs starting at under £300 million in the 2026-27 season and rising to approximately £360 million from the third year.
Additional measures include reducing parachute payments, establishing a £20 million emergency fund for EFL clubs facing financial difficulties, and mandating that 20% of redistributed funds be invested in infrastructure rather than wages or transfer fees.
The agreement requires the backing of at least 14 of the 20 Premier League clubs to be formally presented to the EFL. If approved, this package would represent one of the most significant financial reforms in English football since the Premier League was formed.
The proposed deal aims to create a more sustainable financial future for clubs across the football pyramid, ensuring that lower-league clubs receive a fairer share of the sport's revenues. The next steps involve finalizing the agreement and implementing the proposed changes in the coming seasons.