Premier League club bosses are holding further talks regarding cost control measures for clubs competing in European football and additional funding for the EFL.
The top flight is examining the introduction of a model along similar lines to UEFA’s squad cost ratio, which by 2025-26 will cap the spending of clubs involved in European competitions on wages, transfer fees and agent costs at 70 per cent of revenue.
It is understood that clubs in the Premier League not competing in European competitions will be allowed more leeway on spending, with a ratio of around 85 per cent of revenue having been discussed. This is potentially to ensure a more level playing field for mid table Premier League clubs who are struggling to break that barrier.
There is a major roadblock, however, in these talks with relegated Premier League clubs still earning parachute payments in their first season back in the Championship and being able to continue working to the 85 per cent ratio whilst the bottom half Championship clubs are working on a much tighter budget, closer to the 70 per cent UEFA mark.
Premier League Chief Executive Richard Masters spoke about these talks advancing and what it means for the future of both leagues.
“We have some proposals out for consultation with our clubs about moving and aligning more with the UEFA system,” Masters said at the Culture, Media and Sport committee.
“Some of the issues that are still at debate between the EFL and the Premier League and internally within the Premier League itself are about trying to find a resolution on exactly how the financial regulatory system will work in the future.
“There’s an area of disagreement between us on how cost controls are going to work. Because obviously if you’re going to put more money into a system, that system has to be properly regulated. That system has yet to be fully agreed on how Championship clubs, how relegated clubs and how Premier League clubs operate a common system.” he concluded.
In terms of the extra funding agreement being discussed, EFL Chairman Rick Parry announced that his competition was prepared to accept an amount that would equate to 14.75 per cent of the two competitions’ net media revenues, which he said worked out at an extra £125million ($240 million) a year.
Whilst this is a huge positive for the footballing ladder in England, there is still a debate amongst clubs and representatives over how the extra funding to the EFL should be paid out.
Recently relegated sides are already working on a bigger budget, whilst sides in the bottom half are struggling to pay player wages with this disparity being completely unacceptable.
So it definitely begs the question, does majority of the extra £125million ($240 million) a year go towards helping bottom clubs compete in the long term? or would that be a stain on the league’s integrity and fair play values?
Votes were not casted in last week’s meetings regarding cost control measures or extra funding, but reports suggest that a conclusion is being made swiftly with both parties eager to agree on a fair deal.
