Written by: Keith Tully
A deal has been agreed between the English Football League (EFL) and the Premier League that will see the latter providing £50 million in potentially vital financial support to football clubs in Leagues One and Two.
The fund will distribute money as grants to clubs across the two divisions and further plans are in place to make it possible for Championship clubs to access interest-free loan facilities worth a total of £200 million.
The rescue package has been approved by the EFL’s board members and by bosses of the Premier League, who collectively represent the biggest and richest football clubs in England.
Richard Masters, chief executive of the Premier League, has said his organisation is committed to ensuring that no EFL clubs go out of business as a result of the Covid-19 pandemic.
Mr Masters also noted that the decision to provide additional funding and support to EFL clubs was backed unanimously by Premier League shareholders.
“We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times,” he said.
Rick Parry, chair of the EFL, said in a statement: “Our over-arching aim 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 our clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.”
The £50 million fund established through the deal between the EFL and the Premier League will see £30 million paid out to all the 28 clubs in Leagues One and Two, with the further £20 million to be distributed as ‘monitored grants’ to clubs in the most urgent need of extra support.
Meanwhile, a £15 million commitment from Premier League clubs will be used to cover the interest and fees associated with a new £200 million loan facility that will be made accessible to clubs currently playing in the Championship, the second highest tier of English football.
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