Premier League close to agreeing £130m new funding package for EFL, but parachute payments could be at risk

PREM clubs are set to finally agree a new extra £130million-per-year funding package for the EFL.

But the cash boost will be conditional on lower division clubs accepting strict financial control rules.

And there is STILL no agreement on the future of parachute payments for relegated teams 

EFL chiefs have been pushing for a massive increase of £1bn from top flight TV revenues over a three-year cycle, in addition to the current £1.6bn over the period.

That demand was fiercely resisted by Prem club chiefs, who pointed out that many EFL club owners had deeper pockets than they did.

But with growing pressure from the Government for the Prem and EFL to reach a deal before being ordered to accept a figure, a compromise is being hammered out ahead of next week's meeting of the 20 top flight clubs.

The proposal to be put before the clubs will be for the extra cash to be distributed on a "merit" basis, determined by the final position in each of the three EFL divisions.

As part of the agreement, clubs will also agree to costs limits of their own, limiting spending on wages and transfers to a fixed percentage of revenues.

That will mirror - most likely at a higher threshold - the rules being introduced by UEFA over the next three seasons, which will see a maximum of 70 per cent of revenues allowed to be spent by 2025-26.

The supposed deal would see teams at the top of the Championship nearly doubling their current annual £5.2m Prem windfall to nearer £9m.

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But many of the Prem clubs outside the Big Six remain determined to keep the principal of parachute payments and only accept a limited reduction in their value.

Parachute payments are currently worth up to £106m over three years for established Prem clubs like Leicester who fall out of the top flight.

And some of the smaller Prem clubs are arguing that they should have less tight spending restrictions in the event of relegation and the clubs they join in the Championship.