Premier League clubs to vote on £1.5bn funding deal for lower‑league teams

Premier League clubs are set to vote next week on the "New Deal", a financial redistribution package worth roughly £1.5 billion over ten years for clubs in the English Football League (Championship, League One and League Two). The proposal requires approval from at least 14 of the 20 Premier League clubs and subsequent endorsement by the EFL.

Key elements include raising the Premier League transfer levy from 4 % to 6 %, with the biggest revenue‑generating clubs (e.g., Arsenal, Chelsea, Manchester City, Manchester United, Liverpool) bearing the larger share. Annual payments would start at just under £100 million in the 2026‑27 season, rise to about £130 million the following year and reach approximately £160 million per season from the third year onward. The plan also calls for a gradual reduction of parachute payments to relegated clubs, the creation of a £20 million emergency fund for clubs facing administration, and a rule that at least 20 % of the redistributed money be spent on infrastructure rather than wages or transfer fees.

The Independent Football Regulator will oversee the deal and can impose its own settlement if the clubs fail to reach agreement. If approved by the end of August, the New Deal would become one of the most significant reforms to English football’s financial structure since the league’s formation in 1992.