According to Daily Mail, the Premier League has proposed a "New Deal for Football," which would inject an additional £1.8 billion into the English Football League (EFL) over 10 years.

Sources report that the Premier League's proposed funding would effectively double existing solidarity payments, but comes with conditions including the removal of the Carabao Cup semi-final second leg.

Currently, the two parties remain approximately £27 million apart in reaching an agreement. With the proposal unanimously approved by Premier League clubs last week and presented to EFL clubs, confidence is growing that the deal will prevent intervention by the independent football regulator.

However, distribution of funds among the three divisions remains a key point of contention, with discussions ongoing.

The Premier League seeks to maintain the current distribution ratio: 80% for the Championship, 12% and 8% for League One and League Two respectively. The EFL, however, is requesting 75% for the Championship, and 15% and 10% for League One and League Two. If the EFL's demands are met, Championship clubs would receive £20.6 million per season instead of £12.1 million; League One clubs' share would increase from £2.5 million to £3.8 million, and League Two clubs' share would rise from £1.8 million to £2.5 million, all based on mid-table finishes.

The Premier League plans to raise additional funds by increasing the transfer tax from 4% to 6%. Under the proposal, it also aims to remove the Carabao Cup semi-final second leg and requires the EFL to advance negotiations on a long-term promotion and relegation system of "three up, three down" from League Two to the National League. The Premier League has also stated that 15% of the new funding should be allocated to infrastructure development.

Among these conditions, the Premier League also wishes to include restrictions to prevent the new funds being used to inflate player wages, and hopes to drive reforms that benefit youth development and player recruitment. According to sources, the Premier League hopes this additional funding will primarily reduce EFL clubs' dependence on owner funding rather than continue to inflate already excessive player wages.

The proposal also includes a "parachute fund" of £20 million for clubs in administration, designed to cover essential creditors and operational expenses while the affected club seeks new ownership, with the new owner subsequently repaying the borrowed funds.

Sources suggest the EFL may feel emboldened by the imminent arrival of the regulator and the subsequent threat of intervention. They hope this agreement can be revisited in five years and are determined to secure a larger sum. They have told clubs that there is currently a gap of approximately £27 million with the Premier League, primarily concerning the amount reserved for League One and League Two. The EFL considers this portion extremely important because the funds will ultimately reach where they are most needed. They also want to await the publication of the "Future of Football" report on 12 October before making a decision, as this report is likely to strengthen their negotiating position.

This proposal, known as the "New Deal for Football," represents approximately 17.5% of Premier League broadcast revenues. The EFL currently receives around 11%, and previously requested an increase to 25%. In total terms, this would double the existing share.

Some in the Championship believe the EFL's handling of this matter has been unsatisfactory, with chairman Rick Parry appearing to act unilaterally without adequate consultation with clubs. The agreement has been under discussion for six weeks, and there is also frustration that the EFL negotiated with the Premier League before consulting with clubs; the EFL only informed clubs of the situation during a series of meetings last week.

EFL insiders state that discussions have always been conducted in close consultation with clubs and with full support of the board, which includes representatives from six clubs. They also added that the final decision remains with the clubs. It is understood that the board unanimously agreed to request an additional £27 million. It is also understood that the board was not obliged to present the agreement to clubs until they were ready to make a recommendation. They also aim to ensure consistent external communications to avoid divisions between different divisions.

There have also been concerns about the slow pace of the search for a successor to chief executive Trevor Birch, a highly respected figure who will step down after this season. Sources at the EFL say this process will ensure a comprehensive and thorough search for candidates, allowing for an adequate handover period.

Both the EFL and the Premier League declined to comment.

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