The Premier League’s latest package deal to the EFL includes increased funds, how the money is distributed and the removal of Carabao Cup second-legs
The Premier League is proposing a £1.8bn, 10-year package to the English Football League (EFL) as part of its ‘new deal for football’.
The Daily Mail revealed the English top-flight football league will divide the funded package between the EFL Championship, League One and League Two but has yet to finalise how this will be distributed.
Both the Premier League and EFL have yet to agree on a deal and it has been revealed by sources disclosed to the Daily Mail that the Premier League is £27m off from the EFL’s asking price.
The package has been unanimously agreed between Premier League clubs and has been lodged to the EFL. Sources stated the package is close to being agreed and would not need the intervention of the Independent Football Regulator.
The £1.8bn figure equates to 17.5% of the Premier League’s broadcast revenue. The EFL currently receives 11% of this and had been previously asking for 25%.
The EFL has consulted clubs on the deal which has been on the table for the past six weeks. Some clubs have reportedly become restless with EFL Chairman Rick Parry’s handling for the package deal with the Premier League, as the Daily Mail reported clubs believe he has taken matters into his own hands and has not consulted clubs in the past.
The deal will not be unveiled in full until the EFL believes it is ready to be recommended, nor does the EFL have an obligation to present the deal currently.
The Premier League is also proposing a series of conditions as part of the package. This includes proposals to scrap the second legs of Carabao Cup semi-finals, conditions of how the funds are spent and a ‘lifeboat’ fund for EFL clubs that could fall into administration.
The Premier League’s conditions
One of the most notable proposals raised by the Premier League is the removal of the two legs for Carabao Cup semi-final fixtures.
The Premier League is intending to remove these fixtures and would support the funding left from these games by increasing a transfer levy from 4% to 6%.
Another condition lobbied by the Premier League is for 15% of the funds to be spent on club infrastructure. The top-flight league is maintaining that its current 80% divisional split from the Championship is maintained, while the EFL is seeking for a 75% split. The Premier League is also seeking a 12% split for League One and 8% for League Two.
Championship clubs would earn £20.6m per season, League One clubs would receive £3.8m and League Two clubs would receive £1.8m based on an average of a middle table finish in each respective league.
A ‘lifeboat’ fund is being proposed by the Premier League which would see £20m sent to clubs who enter administration to ensure creditors are paid and would support a club while its owner searches for a new buyer.
There are also proposals for additional controls to player wages increases from the Premier League, as well as new changes to how youth academy players are developed, which are designed to reduce dependency on ownership funding.
How likely will this ‘new deal’ be agreed?
The EFL is conscious of the arrival of the English Independent Football Regulator’s influence in its role to help secure a more favourable deal for the organisation.
The additional £27m the EFL is lobbying for appears to be the main sticking point left between both parties, and the EFL is pushing for the additional funds to support Leagues One and Two.
The regulator is planning on publishing its State of the Game report on 12 October which will analyse how sustainable English football is financially across the entire pyramid and the motivations of club owners.
The report could serve to benefit the EFL’s position in relates to the ‘new deal for football’, should findings from the State of the Game report reveals weaknesses in the financial sustainability of the EFL and its clubs.
Therefore, if the EFL is willing to hold out until the State of the Game report is published, this would mean the deal will not be agreed until the 12 October.
The £1.8bn proposal is the latest from the Premier League in several years. It is a £300m increase from the reported £1.5bn the Premier League was proposing as early as August 2026, and a significant increase from the £915m total package the league was offering to the EFL in December 2023, before talks broke down.
