Patience ‘wearing thin’ as Premier League’s New Deal stalls

Amid talks of the much-anticipated New Deal in the Premier League, government patience is reportedly dwindling as clubs are still in disagreement on how to finance the rescue package.

Years of discussions have led to a divide regarding payment for the pyramid rescue package, with some clubs proposing that it should be covered exclusively by a transfer levy.

A compromise involving merit payments is considered the most likely model, with final agreement expected in the coming weeks. Once this is settled, the Premier League must also secure approval for spending limits on relegated clubs in the Championships before unveiling its annual £130 million package.

However, a senior government source expressed frustration at the failure to reach an agreement after the latest round of lengthy talks between clubs on Tuesday.

The pressure is on for the league to finalize the deal to stave off a more restrictive alternative model that was brought closer after the new independent regulator for English football was outlined in the King’s Speech earlier this month.

There were reports of a “cordial” and “constructive” meeting, but disagreement still exists over the model for how clubs should contribute to the financial solidarity pot.

Smaller clubs argue that a sliding scale payment system solely based on merit would mean they have to contribute a much higher proportion of their revenue to the solidarity pot.

Meanwhile, clubs like Manchester City could end up contributing as little as two percent of their revenue, which equates to about £15 million. This figure pales in comparison to the club’s record-breaking revenue of £712.8 million this year.

The likes of Manchester City, Manchester United, Liverpool, Chelsea, Arsenal, and Tottenham Hotspur have been at odds with other clubs regarding the payment for the new solidarity system.

The possibility of the entire deal being “zero cost” if covered by a transfer tax is a concern for some, as it could be too vulnerable to market fluctuations.

A transfer levy and a traditional formula based on prize money are seen as the most likely outcome by several insiders.

The vision entails additional funds being handed over by the clubs – approximately £90 million this season, £100 million next season, and eventually £170 million. Championship clubs will receive the largest share, with League One and Two clubs sharing around 30 percent. There will be caveats aimed at curtailing excessive spending, which has seen the second-tier clubs reach up to 110 percent of revenue in recent years.

Existing Championship teams will be restricted to spending as little as 70 percent as part of the deal. Relegated clubs, who benefit from parachute payments, are likely to have their limits on wages and transfers set at 85 percent, although this is yet to be finalized.

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month, then enjoy 1 year for just $9 with our US-exclusive offer.