[ad_1]
The Premier League has reached a £ 50 million deal on a bailout for EFL clubs in League One and Two and a £ 200 million loan facility for championship teams.
The rescue package was unanimously agreed upon by Premier League clubs during a shareholders meeting on Thursday, after being approved by the EFL Board in light of the financial challenges many clubs face during the Covid-19 pandemic. .
In addition to the £ 50 million grant for League One and Two clubs, the Premier League will also assist the EFL by making a £ 200 million interest-free loan facility available to championship clubs.
EFL President Rick Parry said: “Our primary goal 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 the EFL. of our clubs and how we have maintained it throughout it all will provide much needed support and clarity after 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 tangible and welcome commitment to the professional game at a time when it has been most needed.” .
1:19
EFL President Rick Parry is excited about the return of some fans to games, but cautioned that such small numbers will not solve the clubs’ financial woes.
Premier League Executive Director Richard Masters added: “The Premier League is a strong supporter of the football pyramid and is well aware of the important role that clubs play in their communities. Our commitment is that no EFL club must close 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 financing and support to EFL clubs in real financial distress.
“We are very pleased to have reached this agreement and join the EFL in our commitment to protect all clubs in these unprecedented times.”
League One and League Two Relay Package explained
A total of £ 50 million will be made available to League One and League Two clubs, and £ 30 million will be paid immediately to the 48 third and fourth tier clubs.
The £ 30 million grant is based on lost entry receipts, with League One clubs receiving a minimum payment of £ 375,000 and League Two clubs £ 250,000. Half of those £ 30 million will be distributed based on a “lost door revenue share calculation”, which must be approved by both the EFL and the Premier League.
2:15
With fans returning to stadiums in England this week, the government has released its health and safety guide to venues that welcome supporters.
The remaining £ 20 million, called ‘Supervised Grant’, will allow clubs to apply based on “need”, according to the EFL-Premier League statement, with a panel to determine each club’s eligibility.
The statement added: “Clubs that subsequently receive a ‘supervised grant’ will be subject to certain restrictions, with regard to transfer fees and player salaries.
“Clubs that adhere to the restrictions will not have to repay the necessary funds, while for clubs in default, the ‘supervised grant’ will be repaid by the club.
“Any club that receives a grant or a supervised grant payment must continue to meet the financial standards of the EFL.”
Championship Loan Facility Explanation
The EFL has also secured a £ 200 million loan from the Premier League that they will be able to lend to championship clubs.
By EFL.com, the loan details are as follows:
- The credit line is provided to assist clubs in the Championship to meet PAYE obligations until the end of June 30, 2021.
- Loans are capped at £ 8.33 million per championship club and money received will be repaid in June 2024 using Premier League solidarity receipts or other central Premier League or EFL distributions.
- This fund is not available to any club that is in breach or is suspected of violating the EFL Regulations and Clubs will be required to re-submit evidence in their Club eligibility applications.
- Any Club that receives a loan payment as detailed must continue to comply with the financial regulations of the EFL.
Dowden welcomes the aid package
Oliver Dowden, Secretary of State for Digital, Culture, Media and Sport, has said he is “glad that football has come together”, with the rescue following a government-issued £ 300 million ‘Winter Survival Package’ last month to protect the immediate future of spectator sports in England.
“I warmly welcome this agreement between the Premier League and the EFL, which provides up to £ 250 million to help clubs through Covid.
“I am glad that football has come together to agree on this substantial package. The fans are starting to come back and we look forward to building on this as soon as it is safe.”
“With a £ 250 million support package for elite men’s football and £ 300 million of government funding for women’s football, the National League and other major spectator sports, we have fuel in the tank for clubs and sports. get over this. “
DCMS Committee Chair Julian Knight added: “We welcome this news which offers a ray of hope to soccer fans, along with a limited return to stadiums. Our concern has always been for those clubs. of lower leagues at risk of survival.
“Most worryingly, however, this deal could have been reached several months ago and we share the fans’ frustration that it took so long. We, as a Committee, have long lobbied the Premier League and the EFL to reach a It cannot be correct that, in the midst of a pandemic, the government has been forced to resolve disputes at the top of the game because football bosses were unable to do it themselves.
“This fiasco is proof of the lack of accountability within the soccer governance structure, demonstrating the urgent need to review how the business of soccer can best be managed in the interests of clubs, fans and the nation. “.
Fans return to EFL games for the first time in 266 days
1:35
After 226 days away, fans from Luton, Wycombe, Charlton, Shrewsbury, Carlisle and Cambridge got to see their team in EFL action on Wednesday night.
Fans returned to English football league matches for the first time in 266 days on Wednesday as clubs in levels one and two welcomed their supporters.
Limited crowds were allowed to assist Luton and Wycombe in the Championship, Charlton and Shrewsbury in League One and Carlisle and Cambridge in League Two, after nationwide blocking restrictions in England ended on Tuesday.
EFL clubs in level three areas continued to play their games behind closed doors on Wednesday.
[ad_2]
