The EFL could see an extra £170million filtered into the football pyramid from the Premier League after the majority of top-flight clubs voted in favour of a "New Deal for Football".
A meeting held on Tuesday determined a complete restructure of English Football that includes scrapping FA Cup replays and changing the format of the Carabao Cup where clubs in Europe either don't need to enter or are able to field an Under-21 side. A spokesperson for the EFL says they have received no formal proposal it remains speculation.
If the proposals go ahead, one of the most significant changes is likely to be in how money is distributed across the leagues. According to the Times, parachute payments are likely to be "drastically cut" although further discussions will be had to determine how much relegated clubs will receive.
Bristol City owner Steve Lansdown, chairman Jon Lansdown and CEO Richard Gould have all been critical of the system in the past and the unfair playing advantage it creates. Relegated clubs currently receive three payments, which averaged £33m annually last season.
An increase in funding to the EFL will also be distributed to clubs on where they finish in the table. Similar to the Premier League format, clubs who finish higher in the division will earn more than those lower down.
Fourteen of the 20 Premier League clubs agreed to the changes with the 'big six' - Arsenal, Chelsea, Manchester United, Manchester City, Tottenham and Liverpool eager to have more clarity over the funding before agreeing. They believe playing in European competitions shouldn't mean they have to contribute more and it should be distributed in relation to league income.
In order for the EFL clubs to receive extra funding, it's said that "Premier League clubs will dictate that EFL clubs must abide by the same financial rules and spending limits as the top-division sides." Clubs are also keen for the extra funds to go towards infrastructure and not on wages.
As it stands, Uefa rules state clubs can only spend 70 per cent of their total revenue on players' wages and transfer fees. The Premier League have decided a higher percentage can be spent in England but "the actual number remains confidential at this stage."
Sky Sports also write that the Premier League will also create a new 'infrastructure fund' to provide extra cash to League One and League Two teams which will be used to help improve facilities. The Premier League are also keen to relax rules for signing foreign players following the restriction post-Brexit.
Clubs are finding it difficult to buy young talent from Europe but the debate will require further discussion with the Government.
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