by The Premier League is under significant pressure after its long-awaited new £900 million football support system failed to deliver, with clubs instead prioritizing reforms to their own spending rules.
With the Government’s new regulator currently in full swing, a two-hour meeting of top-level clubs failed to secure support for the so-called New Deal which was first mooted in the summer of 2022.
One source with close knowledge of the situation in the Government told Telegraph Sport that it is “absolutely disgraceful given that they informed over the weekend that it would definitely go to a vote, and they were ‘ quietly confident’ that it would go away in the last ten days”. .
The insider said the latest expectation is that a new spending rule model for the Premier League could be finalized by June.
A number of EFL clubs are also disappointed that a broad agreement reached on February 29 to present a deal by March 11 has failed to be finalised. Executives also said that the Government could be more effective in efforts to overcome the impasse.
Clubs in English football were hopeful that a package was finally available this week, but senior executives have refused to make repayments before they set their own spending regime.
The current Profit and Sustainability Rules (PSR) – which saw Everton and Nottingham Forest charged this season – are being phased out in favor of a system broadly aligned with squad costs.
The Premier League is understood to have indicated PSR reform is a priority as the situation is complicated by a member club – believed to be Manchester City – threatening a separate legal challenge over the tightening of related party transaction rules.
Talks have been going on behind the scenes for some time, with Sports telegraph reporting last month how some clubs are seeking significant relaxations from the current system.
However, the Premier League was under heavy pressure from ministers to settle the New Deal first after the new manager was announced in the King’s Speech.
The Secretary of Culture encouraged the leagues to make an agreement
The Culture Secretary, Lucy Frazer, and the Sports Minister, Stuart Andrew, have been in close contact with the leagues in recent weeks, and have been urging administrators to agree on terms.
A number of Premier League clubs immediately expressed disappointment at further delays on Monday. One senior source said he “can’t entirely blame” clubs for wanting to reform PSR, but added: “Shouldn’t someone have thought of that a while ago?”
The ongoing stalemate is a major headache for Premier League chief executive Richard Masters, who has identified the New Deal as a top priority for the Government. A planned vote at a shareholder meeting held in a London hotel on Monday evening was scrapped immediately after it became clear it would not gain support.
Many insiders admit the meeting may be the last chance to agree a package worth more than £900 million before parliament impeaches the regulator.
With clubs prioritizing their own financial system instead, 19 clubs backed a separate resolution on aspects of the Premier League’s future financial system, with only Manchester City abstaining.
The league has now been instructed to approve its new financial system before a new system can be voted on for the EFL. “There is promise that we will be able to do a deal but we have to get the system right first,” said an insider. “We have to do it in a sustainable way.”
EFL Clubs say New Government Deal is in jeopardy
Football League clubs have already warned ministers in recent weeks of growing concerns that the New Deal was at risk. The retention of parachute payments “along with proposed cost control changes that will enable relegated clubs to spend even more” have repeatedly emerged as major points of contention. “It’s pretty devastating,” said one source close to talks with the EFL.
Frazer is likely to publish the Football Governance Bill within weeks, which could finally give watchdog powers to impose their own pyramid scheme of support.
Politicians were more involved in talks and clubs trying to ensure progress. The Premier League said after a recent meeting with shareholders that the talks had been “productive”.
“To build on this momentum, the discussions between the clubs of the two leagues will continue in the coming weeks,” said the competition.
However, a statement from the Premier League issued after Monday’s meeting confirmed that the clubs were “prioritizing the rapid development and implementation of a new financial system throughout the League”.
“In addition, Premier League clubs have reaffirmed their commitment to securing a sustainably funded financial agreement with the EFL, subject to the new financial system being formally approved by the clubs,” the statement said. .
Sports telegraph detailed in November how the so-called Big Six have been a major point of contention with rivals disagreeing over whether the top clubs will foot the bill.
Smaller clubs suggested a year ago that the richest teams should accept a greater share of the costs, perhaps through a transfer tax.
