The government has expressed dissatisfaction following the rejection by Premier League clubs of a £900 million support plan for the English Football League (EFL) professional football system. Among the 20 Premier League clubs participating in the vote, only about 10 clubs approved, meaning there were not enough of the required 14 clubs to pass the agreement.
In theory, the Premier League is an independent entity and operates as a corporation. They have a responsibility but are not obliged to contribute a portion of their revenue to support clubs in lower tiers within the professional pyramid model (including 5 tiers). However, as the income gap between the Premier League and other tiers has narrowed, it was the Premier League executives themselves who proposed allocating a portion of their revenue, amounting to hundreds of billions of pounds, to “share” with the EFL.
Earlier in the week, the figure proposed by the Premier League directors was £900 million. Government agencies also hoped for the agreement to be passed, but the vote was unsuccessful. The result caught 10 Downing Street by surprise. The UK Secretary of State for Digital, Culture, Media, and Sport, Lucy Frazer, had spent weeks meeting with Premier League clubs and EFL representatives to push for approval. She also warned that this would be the last opportunity to reach an agreement without government intervention.
With the failure, some sources suggest that the government will expedite the passage of the Football Governance Bill through Parliament. “If football’s governing body doesn’t sort it out, then the government will,” a source from the UK government said, although government intervention could violate FIFA regulations on football’s independence. One of the impacts of government intervention would be increased oversight of the revenue and expenditure of Premier League clubs.
Some politicians argue that the “commitment of the Premier League to reaching an agreement is nothing more than an empty promise.” Former footballer Gary Neville of Sky Sports commented, “It’s a complete embarrassment.” Meanwhile, one of the owners of Charlton Athletic, currently playing in the Championship, Charlie Methven, accuses West Ham and Crystal Palace of being the clubs that voted against, causing the agreement to collapse: “Some Premier League clubs are stifling this industry and driving the rest of us mad by only thinking about their narrow personal interests.”
West Ham and Palace have not commented on these allegations.