According to the latest report from Sky Sports, ahead of Thursday's vote, some Premier League giants discussed alternative options to raise funds for a settlement with the English Football League (EFL) by increasing the transfer levy rate from 4% to 6%.
It is reported that some members of the BIG6, comprising Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, and Tottenham Hotspur, recently discussed amending a proposal that aims to partially fund the new deal by increasing the levy from 4% to 6%.
Sources indicate that Manchester City submitted a revised proposal earlier this week, advocating for a levy increase of only 1 percentage point (i.e., to 5%); however, there is no indication that Manchester City opposes the core principles of the new financial distribution framework between the Premier League and the English Football League (EFL).
Several informed sources state that at least one other Premier League club supports Manchester City's compromise, and other teams have proposed capping the total new tax revenue after the rate increase. Once the cap is reached, the tax rate would revert to the current 4% standard.
Manchester City is a high-spending club itself. This summer, they spent £116 million to sign Nottingham Forest's English midfielder Elliott Anderson. If the new policy is implemented, Manchester City, along with other top Premier League teams, will be a major contributor to the funding of this "New Deal."
This proposed funding mechanism consists of two parts: retaining the existing club revenue distribution rules, combined with the current transfer levy increase. As of Wednesday afternoon local time, it is uncertain whether any big clubs will vote against the draft of this "New Deal" during Thursday's Premier League shareholders' meeting.
However, insiders say that all parties are "confident" that the vote will proceed smoothly and the proposal will ultimately be approved. A Premier League shareholder resolution requires at least 14 of the 20 clubs to vote in favor. Sources believe the proposal has already secured enough votes and can subsequently be officially submitted to the English Football League (EFL) for review.
Premier League Chair Alison Brittain and CEO Richard Masters met with EFL Chair Rick Parry and CEO Trevor Birch on Tuesday to finalize this cooperation agreement, which is crucial for the long-term development of English football. David Kogan, Chair of the Independent Football Regulator (IFR), and CEO Richard Monks also attended the talks.
Manchester City's alternative funding proposal comes as the club is embroiled in a legal battle with the Premier League over 115 alleged breaches of financial rules, a case formally initiated in 2023 and currently awaiting a verdict. Sky News revealed the core terms of this "New Deal" funding plan last weekend, more than three years after the initial proposal for football revenue redistribution.
The amount allocated in the first year of the agreement will be less than £100 million, increasing to £164 million in the third year, and remaining at that level for the remainder of the ten-year agreement period. According to the agreement, a £20 million rescue fund will be established to assist EFL clubs entering administration.
Hundreds of millions of pounds will also be specifically earmarked during the agreement period, with a mandatory requirement that EFL clubs must use 20% of it for infrastructure upgrades such as stadiums and training facilities.
The Independent Football Regulator (IFR) was established by former Prime Minister Boris Johnson after the European Super League fiasco. Its existence means that if the leagues fail to reach an agreement, the regulator has the power to mandate a distribution scheme for the English professional football pyramid.
One source candidly stated: if it weren't for the BIG6 leading the Super League plan back then, there would be no situation where the regulator would be forced to intervene in these "New Deal" negotiations. If the vote on Thursday goes smoothly, the agreement will be formally submitted to the EFL. However, it is understood that the EFL has already indicated that it considers the current financial terms insufficient and requires further strengthening to gain its approval.
Another core element of the agreement: Premier League relegated teams' three-year parachute payments will decrease year by year. A football industry insider not involved in the negotiations commented that in drafting this agreement, efforts were made to appease the EFL, but also largely to meet the requirements of the regulator.
Kogan has publicly stated that if the Independent Football Regulator ultimately has to forcibly implement a solution, it would signal a complete failure of those in power in English football. He said at an industry forum this year:
"It is in everyone's interest for all parties to reach a consensus. If the two leagues cannot finalize a new agreement themselves, regulatory powers will be activated, and we will then re-examine existing systems such as parachute payments."
The Premier League aims to complete all negotiations by the end of August, finalizing the outcome before the Independent Football Regulator publishes its first "State of Football Report" this autumn. This report will comprehensively review financial flows in football, focusing on analyzing the chronic problem of "cliff-edge discrepancies" in income between and within different leagues. If the bilateral agreement is ultimately implemented, it will be one of the most impactful milestones in English football since the creation of the Premier League in the 1990s.
As these agreement negotiations progress, the Premier League is about to introduce new financial control rules – the Squad Cost Ratio: stipulating that a club's total spending on first-team competitive activities must not exceed 85% of its football-related revenue combined with the net profit/loss from player sales.
Insiders revealed that the "New Deal" may also require Championship League teams to subsequently implement this financial constraint framework. Currently, both Manchester City and the Premier League official have declined to comment on the matter.
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