In a statement, the top-flight confirmed that a grant-based fund of £50m has been agreed for clubs in Leagues One and Two, while a £200m interest-free loan facility will be available to those in the 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.
“I would like to thank [Premier League chief executive] Richard Masters and [chairman] Gary Hoffman for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most.”
The government has refused to provide and bailout for EFL clubs in line with other sectors, such as the arts, and consistently argued that football has enough money to look after itself.
Culture secretary Oliver Dowden said: “I warmly welcome this deal between the Premier League and the EFL which provides up to £250 million support to help clubs through covid.
“I’m glad that football has come together to agree this substantial package. Fans are starting to return and we look forward to building on this as soon as it’s safe.
“With a £250 million support package for men’s elite football and £300 million Government funding for women’s football, the National League and other major spectator sports we have fuel in the tank to get clubs and sports through this.”
The package includes a combined £50m for Leagues One and Two, with £30m to be immediately paid to all 48 clubs as a grant to cover lost gate receipts since the initial the shutdown in March.
Each club will receive a minimum payment of £375,000 in League One and £250,000 in League Two, while the remaining £15m will be distributed using a calculation of each club’s lost gate receipts, which will be approved by both the EFL and the Premier League.
Third- and fourth-tier clubs will also be able to apply for a share for a further £20m as a ‘monitored grant’, based on their situation, with an EFL and Premier League panel to determine club eligibility.
Clubs who recieve this additional money will be monitored and have restrictions placed on their transfer spending and wage budget, and clubs who breach their agreed business plan will be liable to repay the money.
The Championship loans will be restricted to £8.33m per club and must be repaid by June 2024.
This fund is not available to any club in breach or suspected breach of EFL Regulations.
Any club in receipt of a loan or grant will be required to continue to maintain compliance with the EFL’s financial regulations
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