UK government fire strong financial threat to Premier League and EFL

Premier League and EFL bosses have been told to find agreement on sharing the game’s riches more fairly or risk being forced to do so by parliament. A Culture, Media and Sport Committee on football governance has recommended urgent agreement on a redistribution of wealth in the game.

According to its findings, there should be a higher proportion of revenue shared with lower rungs of the football pyramid and grassroots.

It also recommended there should be no further increase in the parachute payments from the top flight which the EFL believe is contributing to the creation of a closed shop.

The report concluded with a warning that plans for an independent regulator with teeth to impose statuatory powers should be speeded up if there is no significant progress made.

The Premier League is not in favour of the creation of a government-backed regulator.

Boss Richard Masters told the committee in April there was no significant support for its creation among top flight boards.

But the Committee called for Independent Regulator for English Football (IREF) to be set up in shadow form by the end of the year.

And they also recommended legislation be put in place to give it statutory powers by the end of the Parliament.

Any independent regulator would have jurisdiction over issues such as club licensing, finance, the appointment of owners and directors as well as fan engagement.

Better control over who takes over clubs and whether they have the finance in place to operate is needed to help avoid situations like Bury FC going to the wall in 2019.

Committee chairperson Dame Caroline Dinenage said: “Unless the football authorities get their act together soon on agreeing a fairer share of revenue down the pyramid, we risk more clubs collapsing, with the devastating impact that can have on local communities.

“It’s in the best interests of all involved to get this sorted quickly.”

She added: “If the stalemate continues, the Government should step in to ensure the planned independent regulator is in place with the legal powers to impose a deal to safeguard clubs for the future and ensure the long-term financial stability of the national game.”