Premier League And EFL Agree To £ 250 Million Rescue Package

Premier League And EFL Agree To £ 250 Million Rescue Package
Premier League And EFL Agree To £ 250 Million Rescue Package

 

 

The Premier League and the English Football League (EFL) agreed on a £ 250 million rescue package to help alleviate the financial challenge faced by EFL clubs as a result of the coronavirus pandemic.

The EFL will be assisted in obtaining a £ 200 million loan for the championship clubs. A grant of £ 50 million has been agreed for League One and Two clubs.

 

 

EFL President Rick Parry said it was a “welcome and tangible commitment to the professional game at a time when I needed it most.”

The Premier League will pay up to £ 15 million to help the EFL obtain a £ 200 million loan which it will then lend to the championship clubs without interest.

Loans are capped at £ 8.33 million per club and must be repaid by June 2024.

 




 

The £ 50 million rescue package for leagues one and two is split into two parts: £ 30 million will be paid to the 48 clubs as a grant based on lost entry receipts from the 2019-20 and 2020-21 seasons.

League One clubs will receive a minimum payment of £ 375,000. Clubs in League Two will receive a minimum payout of £ 250,000. The remaining £ 15 million will be distributed using a lost door revenue share calculation.

 

 

An additional £ 20 million supervised grant will be provided and clubs can apply based on their needs. A joint panel from the Premier League and the EFL will determine the club’s eligibility.

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Clubs that receive a supervised grant will be subject to restrictions regarding transfer fees and player salaries.

 

 

“Our primary goal throughout this process has been to ensure that all English as a Foreign Language clubs survive the financial impact of the pandemic,” Parry said.

“I am pleased that we have reached a resolution on behalf of our clubs and, as we have maintained throughout, this will provide much-needed support and clarity after months of uncertainty.”

Premier League Executive Director Richard Masters said: “The Premier League is a great supporter of the football pyramid and is well aware of the important role that clubs play in their communities. Our commitment is that no EFL club should close due to Covid-19.

 

 

 

“All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League shareholders unanimously agreed to provide additional financing and support to EFL clubs in real financial distress.

“We are very pleased to have reached this agreement and join the EFL in our commitment to protect all clubs in these unprecedented times.”

 

 

The Premier League previously said that a financial package for League One and Two clubs was intended to ensure that they “will not go bankrupt as a result of the financial impact of Covid-19 and will be able to complete the 2020-21 season.”

Since March, football has been played behind closed doors until restrictions were lifted in some areas of England this week, meaning clubs have lost vital income from the day.

 

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In October, the EFL clubs rejected the £ 50 million rescue package proposed by the Premier League for the clubs in League One and Two, saying that it “falls short” of the required amount.

High-level clubs made the offer after deciding not to follow Project Big Picture.

But in November, the clubs “agreed in principle” that League One and Two would receive the Premier League package.

 

 

 

The deal came two days after a parliamentary committee learned that 10 English-as-a-foreign-language clubs were having difficulty paying salaries.

The EFL board approved the deal on Thursday before Premier League shareholders gave final approval to the deal.

“I warmly welcome this agreement between the Premier League and the EFL, which provides up to £ 250 million of support to help clubs through Covid,” said Culture Secretary Oliver Dowden.

 

 

 

 

“I am glad that football has come together to agree on this substantial package. Fans are starting to come back and we look forward to building on this as soon as it’s safe.

“With a £ 250 million support package for elite men’s football and £ 300 million of government funding for women’s football, the National League and other major spectator sports, we have fuel in the tank for clubs and sports. get over this. ”

MP Julian Knight, chairman of the Digital, Culture, Media and Sport Committee, said he welcomed the rescue package but criticized the delay..