A meeting between Premier League clubs ended without an agreement on a 'New Deal' for EFL funding.
Top-flight clubs were recently told that failure to reach a funding deal with the EFL (English Football League) would mean one being imposed on them. In a statement, the Premier League said that its clubs had agreed to introduce a new competition-wide financial system.
It said that progress on a deal with the EFL was subject to the new system being approved by clubs. The new financial system, likely to be based on UEFA's model, would replace the current profit and sustainability rules (PSR) which permit clubs to lose a maximum of £105m in a three-year spell.
Everton were deducted 10 points, reduced to six after an appeal, for breaching the rule in the three-year period to 2021-22. They and Nottingham Forest have also been charged for alleged breaches in their accounts for 2022-23 and are waiting for their cases to be heard.
UEFA's rules limit spending on player and coach wages, transfers, and agent fees to a percentage of the club's revenue starting at 90% this season and reducing to 70% from 2025-26. It is possible there will be a vote on bringing in the new regulations in June at the Premier League AGM.
It had been expected that the Premier League would emerge from the meeting with tangible proposals to put forward to the EFL. But despite a willingness to reach a deal it has remained elusive amid continuing issues over how an overall package would be paid for.
There is a feeling among some clubs that "bigger" members of the league should contribute a greater percentage. The overall sum, which would be partly tied to future TV revenues, is expected to be around £900m over six years.
The EFL will soon have a board meeting, where the continued absence of a deal will be high on the agenda. Premier League clubs last met on February 29, in another attempt at agreeing a deal.
But after no progress was made, Culture Secretary Lucy Frazer issued her warning that the new Football Regulator would intervene if a deal was not agreed. The UK government confirmed a new independent body in English football in February.
Among its purposes is to ensure a fair distribution of money filters down the English football pyramid from the Premier League. The Premier League's statement said that its clubs had agreed to prioritise the swift development and implementation of a new league-wide financial system, which is set to provide certainty in relation to their future financial plans and ensure the Premier League is able to retain its existing world-leading investment to all levels of the game.
It added: "Alongside this, Premier League clubs also re-confirmed their commitment to securing a sustainably funded financial agreement with the EFL, subject to the new financial system being formally approved by clubs."