The Premier League And EFL Agrees A £250m Rescue Package
December 3, 2020
The Premier League and the English Football League have agreed a £250-million rescue package as they finally put an end to months of uncertainty for lower-league clubs who are struggling financially during the COVID-19 pandemic.
The EFL said clubs in Leagues One and Two – the third and fourth-tiers – would receive sum worth £50 million ($67 million).
The Premier League is also set to provide further financial help to the EFL in a bid to secure £200-million loan facility for clubs in the second-tier Championship.
“Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic,” said EFL chairman Rick Parry.
“I am pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much-needed support and clarity following months of uncertainty.”
Premier League chief executive Richard Masters said: “The Premier League is a huge supporter of the football pyramid and is well aware of the important role clubs play in their communities.
“Our commitment is that no EFL club need go out of business due to Covid-19. All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.”
The financial package for League One and Two clubs is reportedly locked at £30 million to be split between 48 clubs into those divisions with further access to another £20 million packages of monitored grants.
The £30 million is set to be paid immediately from the Premier League to help cover the loss from matchday revenue.
The monitored grants can be applied for by clubs in need, with a joint EFL and Premier League panel ruling on eligibility.
The Premier League has committed to cover up to £15 million in interest and arrangement fees to enable a £200 million loan to be secured for Championship clubs.