Leicester City Receive SHOCK Financial Blow As Fresh £1.5 Billion Proposal Emerges — This Is Painful

EFL clubs, including Leicester City, have been warned they could be kept waiting up to two years for a new financial settlement from the Premier League if they choose to trigger the Independent Football Regulator’s ‘backstop’ powers.

EFL executives are in ongoing talks with their counterparts in the top flight over a ‘New Deal’ for the English game.

Documents seen by the Press Association – which remain subject to change as negotiations remain ongoing – indicate an increase in solidarity funding of more than £1.5billion over the next 10 years compared to current levels.

Details of the Premier League’s proposal, which was approved by its clubs in July, were presented to the 72 EFL clubs last week.

Within those documents came guidance around the timescales involved should EFL clubs ultimately decide not to accept the Premier League’s offer and instead invoke the IFR’s ‘backstop’ powers to impose a settlement. The EFL told its clubs that process could take between one and two years to reach a resolution and that the outcome was “difficult to predict”.

“That said, the IFR has very clear objectives in relation to sustainability,” the presentation to clubs states.

Both leagues will also be conscious of the expected publication next month of the regulator’s ‘State of the Game’ review, which will provide a wide-ranging analysis of the financial health of the English game, including a view on the impact of parachute payments.

The Premier League’s current ‘New Deal’ proposal includes a commitment to reduce parachute payments to its relegated clubs by five per cent across six years, according to the documents. The offer also makes provision for changes to the cost control measures EFL clubs are subject to.

The deal includes a condition that 15 per cent of solidarity funds clubs receive be set aside for infrastructure projects, while it also makes provisions for the creation of a £20m ‘lifeboat fund’ for clubs that enter administration.

It also foresees stronger partnership between the leagues on a number of issues, including an agreed position on the Saturday 3pm blackout, the structure of the Carabao Cup and the format of the EFL Trophy, which is now under new sponsorship with the American sandwich brand Jersey Mike’s having agreed a five-year deal as title sponsor.

EFL clubs are expected to gather again over the next fortnight for further discussions on the proposals.

The EFL and the Premier League have been approached for comment.