Yahoo Sports Premier League agrees £250m bailout for Football League
The Premier League and English Football League (EFL) have agreed terms over a £250million bailout for League One and League Two clubs amid the ongoing coronavirus pandemic, it has been announced.
The news was confirmed in a joint statement by the Premier League and EFL.
“The EFL and the Premier League have today concluded negotiations on a rescue package and distress fund to address the immediate financial challenges faced by EFL clubs arising as a result of the Covid-19 pandemic,” read the statement, released on Thursday.
“A fund of £50m in the form of a grant and monitored grant payments has been agreed for League One and Two clubs while the Premier League will provide a further financial commitment to assist the EFL in securing a £200m loan facility that Championship clubs will be able to utilise interest free.
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“Premier League clubs have given their final approval to the agreement at today’s Shareholders’ Meeting and this followed earlier approval of the deal by the EFL Board, acting on behalf of its membership.”
In October, the EFL rejected a proposed £50m rescue package from the Premier League.
The new relief package will provide a combined £50m for League One and League Two clubs based on lost income during the 2019/20 and 20/21 seasons, with £30m set to be paid to the 48 clubs by the Premier League immediately as a grant. A further £20m will be available on application.
The minimum payment a League One club will receive will be £375,000, while League Two clubs will receive at least £250,000 each.
The Premier League will also provide up to £15m to allow the EFL to secure a £200m loan facility, which it will then on-lend to Championship clubs without interest.
Loans will be capped at £8.33m for each Championship club, with the lent money to be repaid by June 2024.
The fund will not be available for any clubs that breach or are suspected of breaching EFL Regulations.
EFL chairman Rick Parry said: “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.
“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.”
Masters, the Premier League’s chief executive, 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 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.”
Following the end of a national lockdown on Wednesday, fans of Premier League and EFL clubs will be allowed to attend fixtures in a socially-distanced manner dependent on tier-related restrictions in the areas in which the grounds are located.
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