The Premier League's so-called 'Big Six' have been outvoted by the remaining 14 top-flight clubs in a blow to their hopes of keeping Champions League cash for themselves.
The Premier League has received a mandate from its clubs by a vote of 14-6 to start discussing a new deal with the EFL and FA that will amend English football's wealth distribution system, despite the 'Big Six' questioning the proposals - dubbed the "New Deal for Football"- and how much they would be forced to contribute.
Around £170million more is expected to be given to EFL clubs each year and parachute payments will be cut to limit the amount of teams that yo-yo between the Premier League and the Championship. More money from UEFA competitions is set to be used.
As first reported by The Times, Arsenal, Tottenham, Chelsea, Liverpool and the two Manchester clubs are concerned that European regulars will have to contribute more under the proposals. As such, they want each club's contribution to mirror their Premier League income and European cash to go untouched.
However, the remaining Premier League clubs want money from UEFA competitions - particularly the Champions League - to be included and refused to budge on that point.
If one of the 14 clubs had voted with the 'Big Six', the move would have collapsed. But clubs have been reticent individually to align themselves with the aforementioned sextet since their part in the failed European Super League.
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An important aspect of the new deal will be to ensure a large chunk of the money is used on infrastructure and not players' wages. That way, the long-term future of EFL clubs is prioritised over short-term success.
More cost-control mechanisms are expected to be introduced to limit the amount of money spent on wages, transfers and agents' fees. UEFA are set to limit this spending to 70 per cent of turnover from 2025, but a higher percentage will apply to English clubs.
Other aspects of the English game will be discussed, including FA Cup replays and the future of the EFL Cup. It's understood Premier League clubs want to scrap replays in the third and fourth rounds of the FA Cup, which are big money spinners for EFL clubs.
The Premier League are also keen to chat about the relaxation of rules for signing foreign players, which were tightened in the wake of the Brexit vote. The FA are concerned about the lack of English footballers currently gracing the first tier.
The Premier League, EFL and FA have been reviewing their distribution models since the 'Project Big Picture' idea was announced two years ago. That project, led by some of the country's biggest clubs and the EFL, proposed drastic changes to English football.
Reducing the number of Premier League teams to 18, scrapping the EFL Cup and providing EFL clubs with more cash were among the proposals. The project was widely rejected and left clubs impacted by the Covid pandemic still in need of investment.
The second factor was the proposed European Super League, which aimed to create an elite group of clubs and eliminate Europe's traditional promotion/relegation structure. The idea collapsed with 48 hours.
