The Premier League has concluded negotiations with the English Football League (EFL) regarding an immediate financial package for EFL member clubs facing financial challenges caused by the COVID-19 pandemic.
A £50 million grant and monitored grant payments has been agreed for clubs operating in League One and League Two, whilst the Premier League will provide a financial commitment to assisting the EFL in securing a £200 million loan facility for Championship clubs to utilize interest free.
Premier League clubs gave their final approval to the agreement at a shareholders meeting yesterday (December 3), which followed earlier approval to the agreement of the deal by the EFL board.
“Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic,” EFL chairman, Rick Parry said.
“I am pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.
“I would like to thank Richard Masters and Gary Hoffman for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most.”
Richard Masters, Premier League Chief Executive, added: “The Premier League is a huge a supporter of the football pyramid and is well aware of the important role clubs play in their communities. Our commitment is that no EFL club need go out of business due to COVID-19.
“All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League Shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.
“We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times.”
The UK government has been clear in stating that the Premier League should be responsible for providing financial assistance to the EFL and not receive the various packages provided to other sports and other industries.
The UK’s culture secretary, Oliver Dowden, said: “I warmly welcome this deal between the Premier League and the EFL which provides up to UK£250 million support to help clubs through Covid.
“I’m glad that football has come together to agree this substantial package. Fans are starting to return and we look forward to building on this as soon as it’s safe.
“With a UK£250 million support package for men’s elite football and UK£300 million government funding for women’s football, the National League and other major spectator sports we have fuel in the tank to get clubs and sports through this.”
Author: Jake Wilkin