Football’s new independent regulator will have the power to settle the ongoing row over financial distribution between the Premier League and the EFL.
The Football Governance Bill is to be introduced to Parliament today (Tuesday) and while precise details over the point at which the powers would be triggered and what those powers would look like aren't yet known, the Government said in a consultation response last September that one option it was considering was binding final offer arbitration.
Under that system, the two leagues would each submit their proposal, the regulator would assess them against predetermined criteria, and then would choose and impose one as the binding arrangement.
There had been hope that the Premier League’s clubs would make a formal offer to the EFL at a meeting last Monday, but none was forthcoming and instead the Premier League said its clubs were focused on first agreeing new financial rules for the top flight.
A Premier League statement released on Monday evening read: “The Premier League will now study the Football Governance Bill, working closely with Government, parliamentarians and key stakeholders.
“We agree it is vital that football clubs are sustainable, remain at the heart of their communities and that fans are fundamental to the game.”
Top flight clubs were accused by Culture, Media and Sport select committee chair Dame Caroline Dinenage of making an “empty promise” while the EFL said it was “clearly disappointed” at the “repeated failure” to put forward any new funding offer.
Premier League sources insist the EFL pushed back on 15 separate points when the Premier League made a proposal covering increased funding and cost controls to the EFL last September.
EFL chair Rick Parry told MPs in January that the funding offer under discussion would give his competition 14.75 per cent of the net media revenues earned by the EFL and the Premier League.
This has been projected to be worth an extra £900million to the EFL over six seasons.
Parry welcomed the introduction of the Bill on Monday, saying it could “help fix the game’s broken financial model” but only if it was “delivered on the right terms”.
He said: "The EFL welcomes today’s arrival of the Football Governance Bill to Parliament in what we hope will be an important milestone to help us secure the long-term financial sustainability of England’s football pyramid.
"If delivered on the right terms, this landmark legislation can help fix the game’s broken financial model by offering the independent input ultimately needed to help ensure that all clubs can survive and thrive in a fair and competitive environment.
“The establishment of the independent football regulator will be at the heart of this reform, and we are encouraged that the regulator will be given backstop powers to deliver financial redistributions should the game be unable to agree a deal itself."
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