Premier League puts new deal vote on hold amid club deadlock

The Premier League has failed to agree a new financial solution for English football amid an ongoing deadlock between clubs.

Sky News understands that a planned vote at a shareholders’ meeting on Monday afternoon has been called off after it became apparent that it would not be able to win the support of the required majority among the 14 clubs.

The meeting could be the last chance to agree on the proposed £836m deal before the government legislates to create a new football regulator.

Football insiders said on Monday the decision was a “blow” to the Premier League’s authority and would raise new questions about the future governance and financial management of the sport.

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A separate resolution on elements of the Premier League’s future financial system received overwhelming support, with 19 clubs voting in favor and only Manchester City, which is taking legal action against the Premier League over related party transaction rules, abstaining.

One source said the outcome of the meeting highlighted a seemingly intractable impasse in the world’s richest domestic football league.

Over the weekend, Sky News revealed that Premier League bosses are busy finalizing a landmark financial settlement with the English Football League (EFL).

Twenty top clubs, including Aston Villa, Liverpool and Tottenham Hotspur, will be asked to approve a revised version of the “New Deal”, which includes a proposal to increase player transfer taxes.

After several previous versions were blocked by Premier League clubs, the revised blueprint includes clauses for an immediate payment of £44m to the lower leagues, followed by a further £44m within a few months.

However, the £88m will effectively be treated as a loan, to be repaid by the EFL over six years.

The Premier League’s decision to make the vote independent of any conditions attached to wider financial reforms in English football has alarmed some top-flight bosses.

Legislation to establish the new regulator could be introduced this month, according to Whitehall sources.

Rishi Sunak has warned English football’s power brokers that the deal will be introduced whether they agree to it or not – a threat that has sparked outrage from club bosses who believe the Tories themselves are risking the financial sustainability of the professional game .

“I hope the Premier League and the EFL can make some appropriate arrangements themselves – that would be better,” the Prime Minister said in January.

“But, ultimately, if that’s not possible, the regulators will be able to step in and do that to ensure that we distribute resources equitably across the football pyramid, certainly promoting the Premier League, but supporting community football… And all over the country.”

Negotiations on the new deal have dragged on for more than a year.

At one point last autumn a deal worth £925m looked imminent, but in December Premier League chief executive Richard Masters informed clubs that due to internal concerns over the size Further negotiations with the EFL and the structure of the proposed deal will be suspended due to disagreements.

However, at last month’s shareholder meeting, he said talks were becoming more constructive again.

Some clubs appear resigned to the lack of a voluntary agreement and believe the new regulator will be responsible for making an agreement one of its top priorities.

However, because of the time it takes to get the regulator up and running fully, government officials believe it may not be possible until 2026.

There is serious unease among Premier League clubs over the cost of EFL subsidies and the lack of certainty over the regulator’s powers and other financial reforms.

It is understood that at least one club in the bottom half of the Premier League has raised the prospect of having to borrow money this year to fund its expected share of the English Football League (EFL).

It is one of a series of governance and legal conundrums facing the Premier League, which begins a new battle with Manchester City over related-party transaction rules that have the greatest impact on clubs with state-owned, private equity or multi-club ownership structures.

The Premier League declined to comment.