High-level officials from the Premier League, the English Football League (EFL), and the independent football regulator (IFR) held a new round of talks on Monday, hoping to reach an agreement on a funding distribution deal worth approximately £180 million annually by the end of the week. The aim is to allocate more Premier League revenue to lower-division professional clubs in England, according to Sky News reporter Mark Kleinman.

It is understood that the chairmen and chief executives of the Premier League, EFL, and IFR all participated in the talks. The EFL plans to hold separate meetings with clubs from its different divisions on Thursday and another board meeting on Friday to decide whether to accept the latest proposal from the Premier League.

The Premier League previously proposed an additional £150 million in solidarity payments to lower leagues annually. It has now indicated its willingness to increase this amount to approximately £180 million, though the increased allocation still requires approval by a vote among Premier League clubs.

Currently, one of the main unresolved disagreements between the two sides is the duration of the agreement. The EFL wants the new agreement to last only five years, while the Premier League initially proposed a ten-year deal. Sources close to the negotiations revealed that the Premier League is willing to compromise, accepting a solution between five and ten years.

However, the scale of funding remains at the heart of the dispute. The EFL is demanding an additional £207 million in annual funding, which the Premier League considers unacceptable.

It is reported that EFL chairman Rick Parry believes that even if the Premier League increases the annual allocation to £180 million, it will still be insufficient to meet the needs of lower-league clubs.

Based on the amounts proposed by both sides, the annual funding gap is £27 million. If the agreement lasts for five years, the cumulative difference would reach £135 million. This disagreement could lead to a continued deadlock in the funding distribution reform, known as the "New Deal."

Meanwhile, the independent football regulator is set to release its first "State of Football Report" since its establishment next week. This report will analyze the serious financial risks still facing English football despite unprecedented levels of wealth, as well as the economic disparities between clubs at different levels.

Negotiations between the Premier League and the EFL regarding financial redistribution have been ongoing intermittently for about three years. IFR chairman David Coghlan has always hoped that both sides could reach an agreement independently, without the need for regulatory intervention.

Coghlan previously stated that if the IFR ultimately had to use its statutory backstop intervention powers to force both sides to accept a funding distribution plan, it would signify a complete failure of English football's management negotiation capabilities.

"It is in everyone's long-term interest for football to try and work this out for itself," he said at an industry conference earlier this year.

According to the relevant mechanisms, if the Premier League and the EFL fail to reach an agreement independently, one or both parties would need to request the IFR to initiate a backstop intervention process, where the regulator would impose a solution.

However, this also means that the EFL might have to endure a long wait to actually receive the additional funding, and many lower-league clubs have explicitly stated that this money is crucial for their financial sustainability.

Representatives from The Football Association did not attend this high-level meeting. At the same time, the Premier League is facing pressure from the Man City financial fair play case. An independent commission previously found Man City guilty of 115 alleged financial rule breaches, and Man City has appealed the decision.

As the case is still in the appeal stage, there is ongoing attention on the potential penalties Man City might ultimately face, including expulsion from the Premier League, severe fines, and points deductions.

The Premier League, EFL, and IFR all declined to comment on the latest negotiation developments.

Last month, the Premier League issued a statement saying it was continuing discussions with the EFL to establish a new strategic partnership.

The statement read: "Management from both leagues have remained in dialogue since a fair and generous proposal was formally made to the EFL last month, which was also presented to EFL clubs last week."

"The Premier League remains committed to reaching a solution expeditiously through internal football discussions so that additional funding can be provided to EFL clubs this season."

In addition to increased annual allocations, the Premier League's proposal also includes the establishment of a new financial relief fund to support lower-league clubs facing economic difficulties.

The new plan also aims to reduce "parachute payments" to relegated Premier League teams and establish dedicated infrastructure investment funds for all 72 EFL clubs.

The report noted that these new funds would be provided in addition to the funds the Premier League currently invests in other levels of English football.

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