The Premier League has agreed to a proposal that could see an additional £1.5 billion distributed to clubs across the top four tiers of English football over the next decade. The unanimous vote to approve the “new deal for football” occurred during a meeting held on Tuesday, following extensive discussions with the English Football League (EFL). The offer is now set to be submitted to the EFL board for formal consideration.
Under the terms originally reported, the agreement would run for 10 years and supplement the existing £1.6 billion distributed to clubs and grassroots football every three years. Part of the increased funding would be allocated to specific initiatives, including a “lifeboat” fund aimed at assisting clubs facing immediate financial difficulties, as well as a fund dedicated to infrastructure development. To finance the additional payments, Premier League clubs have reportedly consented to raise the transfer levy—from 4% to 6%—applied to all top-flight player transfers. Manchester City was noted to have initially opposed the levy increase.
In a statement, the Premier League confirmed that all clubs had “unanimously voted to approve a funded proposal for a new strategic partnership with the EFL,” and expressed a commitment to continue working with the EFL to advance the initiative, emphasizing a focus on a “football-led solution.”
The EFL has yet to receive the formal offer but described recent exchanges with the Premier League as “constructive.” Its board is preparing to review the full details of the proposal, assessing the potential benefits, consequences, and alignment with the long-term interests of the league’s 72 member clubs. The EFL stated it will engage in further discussions with the Premier League following this review.
This development marks the first time Premier League clubs have formally backed a redistribution proposal since initial calls for increased financial support to the lower tiers emerged five years ago. The COVID-19 pandemic exposed significant financial vulnerabilities across many EFL clubs, prompting criticism of the existing funding arrangements. In 2022, then-sports minister Nigel Huddleston remarked that the public had grown “out of patience” with the lack of progress in securing a better settlement for the lower leagues.
The debate over sharing Premier League revenues more equitably also contributed to the establishment of the Independent Football Regulator last year. Although the regulator has not been directly involved in negotiating the deal, it holds a “back-stop” authority to intervene should the parties fail to reach an agreement.
Despite the cautious optimism surrounding the proposal, acceptance by the EFL is not assured. Some within the league reportedly view the offer as closely resembling a previous 2023 proposal that did not gain Premier League approval. Both the Premier League and EFL have affirmed their commitment to ongoing dialogue to strive toward a resolution.