The Premier League and English Football League (EFL) have agreed a £250m rescue package to help ease the financial challenge faced by EFL clubs as a result of the coronavirus pandemic.
The EFL will be assisted in getting a £200m loan for Championship clubs.
A £50m grant has been agreed for League One and Two clubs.
EFL chairman Rick Parry said it was a “welcome, tangible commitment to the professional game at a time when it has needed it most”.
How will it work?
The Premier League will pay up to £15m to help the EFL to secure a £200m loan which it will then lend to Championship clubs interest free.
Loans are capped at £8.33m per club and must be repaid by June 2024.
The £50m rescue package for Leagues One and Two is split into two parts – £30m will be paid to the 48 clubs as a grant based on missed gate receipts from the 2019-20 and 2020-21 seasons.
- League One clubs will receive a minimum payment of £375,000.
- League Two clubs will receive a minimum payment of £250,000.
- The remaining £15m will be distributed using a lost gate revenue share calculation.
A further £20m monitored grant will be provided and clubs can apply based on need. A joint Premier League and EFL panel will determine club eligibility.
Parry added: “Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.
“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.”
Premier League chief executive Richard Masters said: “The Premier League is a huge 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 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.”
More to follow.