Liverpool could shell out £45m amid breakthrough in talks
Liverpool and other leading Premier League clubs could soon pay an extra £45m a year in solidarity payments over a three-year cycle, football insider learned.
There is growing confidence among senior figures at EFL clubs that a financial reallocation deal will be struck before an independent regulator is brought in.
The game-changing move will change the dynamic amid fears more clubs outside the top flight will go bankrupt – Huddersfield Town are the latest to do so amid government concerns – without more help from the elite .
The two most powerful bodies in English football have been in talks for months over possible changes to the way cash flows down the pyramid.
Talks in February gained urgency after the government laid out plans for an independent football regulator that would be empowered to enforce its own financial model.
The EFL wants a 25% cut of Premier League TV revenue, a substantial increase from the 16% they currently receive, which they believe is necessary for non-top clubs to be financially sustainable.
Sentiment among those with first-hand knowledge of the situation ranged between optimism and pessimism, but EFL sources told football insider It is now believed that discussions are nearing a conclusion.
The result could be major structural changes – with the EFL wanting to remove parachute payments and most Premier Leagues wanting to see domestic cup competitions scrapped.
this Premier League Taking into account domestic and overseas rights, the TV deal is worth more than £10bn over its current three-year cycle.
Should the EFL succeed in securing a 9% increase in solidarity payments, this would equate to an additional £900m per rights cycle.
This means that each Premier League club will contribute an additional £45m every three years, assuming an even distribution among top clubs.
This is by no means a formality, as different factions in the Premier League believe reallocation costs should be proportional to league positions.
Under such a system, teams such as Liverpool would earn more TV revenue than any other team in 2021-22, paying more than their average share of £45m.
In other news, Chelsea have agreed to sell Mount as Liverpool pounce.