Premier League clubs have been warned by the British government to reach an agreement for a new financial deal with Football League (EFL) teams or have one imposed on them by an independent football regulator.
The 20 top-flight clubs have been in negotiations with their lower league counterparts about the ‘New Deal’, which would see around 900 million pounds ($1.14 billion) distributed over a six-year period.
Premier League chief Richard Masters has so far been unable to secure a mandate from a majority of Premier League clubs, with talks paused at the end of last year.
However, Culture Secretary Lucy Frazer has urged the Premier League to complete the deal, which is designed to level up the disparity between the elite and the 72 Football League clubs.
“We don’t want this to be an issue for the regulator,” Frazer said at the Financial Times Business of Football Conference in London on Thursday.
“It is in the Premier League and EFL’s interests to come to a deal, but it is clear if they don’t, the regulator will.”
The UK government has promised to bring in legislation for a new independent regulator this year, with a remit including financial stability, protecting the interests of fans, and stopping clubs from joining breakaway leagues.
More than 60 English clubs, mainly in the lower rungs of the ladder, have entered administration since the Premier League came into being in 1992.
