By now I am assuming you will have heard about the Liverpool and Manchester United plan to ‘save’ football.
If you haven’t read it in great detail, go HERE for a comprehensive overview of the laughable power grab.
I have also detailed at the bottom of this piece, some of the key parts of the Liverpool plan regarding the Premier League and EFL clubs.
Basically, this is the rich and powerful putting together two completely separate issues in order to confuse and muddy the waters, at to exactly what is actually happening.
On the one hand, the help the EFL clubs desperately need in order for all, or as many as possible anyway, to survive and hopefully then thrive in the future.
Then on the other hand, the Premier League elite wanting to help themselves to grab total power.
The things is, they (Liverpool, Manchester United and the other usual suspects) want to make out that to achieve the first, the second thing needs to happen.
Liverpool and Manchester United wanting to portray themselves (and the rest of the ‘big six’) as being the ones coming to the rescue of the EFL clubs…but is this really true?
Well, no not really, indeed not at all. At least not in any way you might be thinking.
You would think from the whole tone of the Liverpool and Manchester United plan and the words of their mate Rick Parry, Chairman of the EFL, that the ‘big’ clubs were going to be personally financing this whole thing, in return for being allowed the power grab.
So, for example, are the owners of the likes of Manchester United and Liverpool personally putting up £100m or whatever each, along with the owners of Chelsea, Arsenal, Tottenham and Man City, to save the EFL clubs?
No, anything but.
This is the biggest, shocking and most outrageous trick of the whole Liverpool and Manchester United plan to ‘save’ football.
At the moment, help is given by the Premier League to EFL clubs in the form of parachute payments and solidarity payments.
Parachute payments made to EFL clubs for three years (unless they get promoted) who have fallen out of the Premier League, to help them cope with the fall in income but still retaining significant Premier League costs, especially wages.
The solidarity payments are then distributed amongst all of the other EFL clubs who aren’t in receipt of parachute payments in any particular season.
These are the parachute payments in recent seasons (2019/20 figures not available):
2017/18 Parachute Payments:
£41.6m (each) Hull, Sunderland, Middlesbrough
£34.0m (each) Villa, Norwich
£16.6m (each) Cardiff, Fulham, QPR
2018/19 Parachute Payments:
£42.6m (each) Swansea, Stoke, West Brom
£34.9m (each) Hull, Sunderland, Middlesbrough
In 2018/19, the solidarity payments totalled £106.3m amongst the other 60+ EFL clubs not in receipt of parachute payments.
So in 2018/19, some £371.3m was paid to EFL clubs from the big (mainly Premier League generated) pot.
It is this money that Liverpool and Manchester United are talking about being allocated differently, it isn’t new money they (or anybody else) are putting in! Taking future parachute money off relegated clubs and dividing it more evenly amongst all EFL clubs.
They are like a dodgy Government pretending that this is new money when quite the opposite.
The initial £250m to be made available would be a loan taken out by the Premier League as a whole, including all those mug clubs that the likes of Liverpool and Manchester United want to take power away from. Leaving the elite to decide and dictate whatever happens in the future.
Under their proposals, five clubs could be relegated in a single season to bring the Premier League down to 18 clubs, so that the elite can play more lucrative friendlies and play more games in the future in an extended Champions League format that is also reported to be in the planning.
If you flip this whole thing round then, is it a case of Liverpool and Manchester United in reality being the total villains of the piece?
If the rest of the Premier League (they need 14 votes to make major changes…currently!) don’t agree to their plan, are Liverpool, Manchester United and the other elite clubs then going to refuse the necessary help to the EFL clubs?
The Telegraph revealing in their Sunday exclusive that the proposals include:
£250 million immediately to the EFL to compensate its clubs for lost matchday revenue, deducted from future television revenue earnings and financed by a loan taken out by the Premier League
Special status for the nine longest serving clubs – and the vote of only six of those “long-term shareholders” required to make major changes, including amending rules and regulations, agreeing contracts, removal of the chief executive, and a wide-ranging veto including on club ownership
Premier League to go to 18 clubs from 20
£100 million one-off gift to the FA to cover its coronavirus losses, the non-league game, the women’s game, the grassroots
8.5 per cent of annual net Premier League revenue to go on operating costs and “good causes” including the FA
From the remainder, 25 per cent of all combined Premier League and Football League revenues to go to the EFL clubs
Six per cent of Premier League gross revenues to pay for stadium improvements across the top four divisions, calculated at £100 per seat
New rules for the distribution of Premier League television income, overseas and domestic, including proposals that base one portion on performance over three years in the league
The abolition of the League Cup and the Community Shield
24 clubs each in the Championship, League One and League Two reducing the professional game overall from 92 clubs to 90
Two sides automatically relegated from the Premier League every season and the top two Championship teams promoted. The 16th place Premier League club in a play-off tournament with the Championship’s third, fourth and fifth placed teams.
Later Premier League start in August to give greater scope for pre-season friendlies, and requirement for all clubs to compete once every five years in a summer Premier League tournament
Huge changes to loan system allowing clubs to have 15 players out on loan domestically at any one time and up to four at a single club in England