WREXHAM, WALES - APRIL 10: Phil Parkinson the head coach / manager of Wrexham during the Vanarama National League fixture between Wrexham and Notts County at The Racecourse Ground on April 10, 2023 in Wrexham, Wales. (Photo by Matthew Ashton - AMA/Getty Images)
Blackpool, Wrexham and Bolton Wanderers left in limbo over £900m windfall
Earlier this week it was reported that champions Manchester City are taking legal action against the Premier League and it could have repercussions for clubs in the EFL.
The Citizens will face the governing body in a legal battle over commercial rules. BBC Sport reported earlier this week that an arbitration hearing will be heard on June 10 to June 21. City want to challenge the rules on the limits placed on clubs when they are paid by companies linked to those who own the football clubs.
Between 10 and 12 clubs are supporting the Premier League’s defence after City’s challenge according to The Times. Aston Villa along with Aston Villa and Newcastle United are said to sympathise with City. Those in disagreement of City’s claim believe that if successful it would impact the competitiveness of the league. Manchester City have won the last four Premier League titles and won the treble in 2022/23.
As well as impacting the Premier League, the knock-on affect of the challenge could mean that a deal between the Premier League and the EFL could be put on the back burner. The Premier League and EFL were at a stalemate when discussing a settlement which would help safeguard the future of English football.
A deal was proposed to the Premier League by the EFL which was branded ‘New Deal for Football’. It would see the EFL receive £150m over six years, giving them a £900m total which would be dished out to the 72 EFL clubs.
If the current financial rules are scrapped and City came out of the battle victorious then clubs would not be able to give handouts to clubs in the lower divisions.
News of City’s legal battle is a double whammy for lower league clubs. The announcement of the General Election meant that the Football Governance Bill, which would bring in an independent regulator to English football – would not go through in time.
Former sports minister Tracey Crouch said in a post on X: “Unfortunately the Football Governance Bill will progress no further and although there is a ready made Bill for the next Government, I won’t be here to see it pass. I just wanted to say a massive thank you to EVERYONE who helped shape this Bill.
“A lot of people have poured their heart and soul into the Bill – officials, politicians, authorities, clubs and of course fans. I am 100% convinced there will be an Independent Regulator for football, thanks to the efforts of others and the desire for sustainability.
“My final plea is to the Premier League and EFL…please, for the sake of football, sit back down and start negotiating a deal. The impasse is infuriating. I know it is complex. But please, agree a deal. The End.”
