Rick Parry has warned “two thirds” of EFL clubs will go out of business unless football can agree a financial deal.
The grim warning came despite the publication of the Government’s new White Paper which confirmed plans for a new independent regulator after a fan-led review.
EFL chairman Parry wants a better share of the spoils from the mega wealthy Premier League but also wants assurances on the new licensing system which is the centrepiece of the new set-up.
Clubs will have to pass four “threshold conditions” to get a licence on financial resources, suitable owners, serving fan interests and playing in approved competitions.
But Parry warned that many hard-up clubs cannot offer long term guarantees without more cash help and therefore are desperate for the stand-off with the Premier League to be resolved as quickly as possible.
Parry said: “There are backstop powers for the regulator in the event that football cannot solve redistribution and based on the evidence of the last 30 years, football cannot solve redistribution.
“Get on with it. We all need clarity as quickly as possible. The Sports Minister knows our thoughts, he knows that we don’t think that backstop powers are sufficient on redistribution because if we don’t solve redistribution what is the regulator going to do?
“Is he going to put two thirds of our clubs out of business by refusing to give them a licence when the objective is to keep them alive. The Minister is acutely aware of our views because we tell him every time we see him but it is a step in the right direction.”
The Premier League and EFL have been involved in an ugly stand-off with the EFL demanding a 25 per cent share of pooled broadcast revenue while top flight clubs point to solidarity and parachute payments and insist they should not have to bail out badly run clubs.
Even Parry has described the Championship as a “basket case” because clubs spend recklessly to chase promotion to the Premier League.
The EFL and Prem have entered a new round of negotiations but there is little sight of a solution despite top flight clubs spending record sums in the last transfer window.
Sports Minister Stuart Andrew stressed the new regulator will step in if an agreement cannot be reached and, when asked, said he shares the view that the Premier League should do more.
Andrew said: “Yes, I do and I think in fairness the Premier League have expressed the view that more money has to be redistributed and that’s why we are saying to them: ‘well, if you agree that, get round the table and get that deal done as quickly as possible.’
“They’ve got the choice now, they can make this happen, they can make the deal and if they don’t then the independent regulator will have to step in. I hope it’s going to encourage them to get on with it.
“The ball’s in their court – otherwise the regulator will look at that criteria and will step in. I would say the clock already started ticking before we published this.”
Andrew also insisted the new regulator will help oversee a more solid owners’ and directors’ test when it comes to takeovers and maintained they have offered assurances to FIFA on maintaining independence as football’s governing body strictly outlaws any political interference.
The licensing system will also give fans a bigger say. One of the key reasons the Government decided to bring in a regulator was the Premier League’s Big Six signed up to a breakaway with the European Super League.
But it appears the White Paper is taking revenge because it states the cost of a regulator will be shared “proportionably” by the cubs with the high-earning Big Six expected to cover “50 per cent of the total cost off regulation” with the top flight shouldering around 80 per cent in total.
