The Premier League has declared its intention to reach a new funding agreement with the EFL "as soon as possible," following months of stalled negotiations between England's top two tiers of professional football.

Last week, the Premier League formally presented a 10-year proposal to the EFL that would double solidarity payments distributed to the 72 EFL clubs. The offer, valued at an additional £1.8 billion, is expected to be partially funded through an increase in the Premier League's transfer levy.

Where talks stand

Premier League clubs met on Thursday, and a statement issued afterwards confirmed that discussions with the EFL are continuing. "Since a fair and generous proposal was formally offered to the EFL last month, discussions have continued between the leagues' executives," the statement read.

"The Premier League remains committed to concluding a football-led solution as soon as possible so additional money can flow to EFL clubs this season."

Despite the optimistic tone, the EFL has not yet accepted the proposal, and negotiations remain unresolved. The EFL declined to comment.

The regulator looms

Underlying the Premier League's urgency is the threat of government intervention. In March 2024, officials warned both leagues that if they could not strike a deal independently, a settlement would be imposed on them through the newly established Independent Football Regulator, using its "backstop" powers. The Premier League is eager to avoid that outcome.

The proposed deal carries additional conditions: it would require scrapping the second leg of the Carabao Cup semi-final and include financial controls to prevent the extra funds from being channelled into player wages.

Years of disagreement

This funding dispute stretches back to a fan-led review in 2021, commissioned by the government in the wake of several crises — among them the failed European Super League project and the financial collapse of Bury FC. Yet despite the years that have passed, the two sides have been unable to agree on the shape of any redistribution arrangement.

The central sticking point remains parachute payments — the financial lifeline handed to clubs relegated from the Premier League. The EFL argues these payments distort competition and encourage reckless spending by clubs chasing promotion. The Premier League, in turn, contends they are essential to give clubs the confidence to invest, and that the competition they generate ultimately produces the revenues shared downward through the football pyramid.

Premier League clubs agreed internally on their position in late July, marking a breakthrough after years of internal stalemate — but bridging the gap with the EFL has proven far more difficult.