UK Government Urges Premier League Clubs to Reach New Financial Deal with Football League

The British government has issued a warning to Premier League clubs, urging them to reach a new financial deal with Football League (EFL) teams. If an agreement is not reached, an independent Football Regulator may impose a deal on the clubs. The negotiations for the 'New Deal' have been ongoing between the 20 top-flight clubs and their lower league counterparts. The deal aims to distribute approximately £900 million ($1.14 billion) over a six-year period. Premier League chief Richard Masters has been unable to secure a mandate from a majority of Premier League clubs, resulting in talks being paused. However, Culture Secretary Lucy Frazer has emphasized the importance of completing the deal to address the disparity between the elite clubs and the 72 Football League clubs. The UK government plans to introduce legislation for a new Independent Regulator this year, with a focus on financial stability, protecting fan interests, and preventing clubs from joining breakaway leagues. Over 60 English clubs, primarily in the lower divisions, have entered administration since the establishment of the Premier League in 1992. Frazer highlighted the government's commitment to the Independent Regulator, stating that it is a priority outlined in the Football Governance Bill. She also clarified that the regulator would not discourage foreign investment in Premier League clubs, as long as the clubs are well-run and maintain their cultural significance as a national export.