Premier League's talks on cost control and EFL funding continue

The top flight is examining the introduction of a model along similar lines to UEFA's squad cost ratio, which by 2025-26 will cap the spending of clubs involved in European competitions on wages, transfer fees and agent costs at 70 per cent of revenue.

English clubs playing in Europe will therefore need to abide by this system, and the Premier League will continue to discuss its own cost control regulations which would ultimately supersede the existing profitability and sustainability rules (PSR) at a strategy meeting on Thursday and a shareholders' meeting on Friday.

It is understood discussions have taken place on allowing clubs outside European competition, who are therefore not subject to the UEFA rules, more leeway on spending, with a ratio of around 85 per cent of revenue having been discussed.

"The current system, the PSR system, we are contemplating making some changes to that over time," Premier League chief executive Richard Masters said when he updated MPs on the Culture, Media and Sport committee last month.

"We have some proposals out for consultation with our clubs about moving and aligning more with the UEFA system.

"We need to consider whether that is an appropriate move for us, and how we do that and when. So that's sort of a large chunk of day one (Thursday). On day two (Friday), it's a normal shareholders' meeting, when we'll be discussing again the New Deal.

"I don't necessarily expect it to be the moment when we formalise things, we need the time to make sure that all aspects of the deal are fully understood by everybody."

One major sticking point in the Premier League's New Deal discussions with the EFL centres on the top flight's support for clubs relegated to the Sky Bet Championship being able to continue to work to the 85 per cent ratio.

The EFL's chairman Rick Parry says this, along with the continuation of parachute payments, will widen the gulf between such clubs and the rest of the Championship who are set to work to a much tighter limit, closer to the 70 per cent UEFA mark.

"Some of the issues that are still at debate between (the EFL and the Premier League) and internally within the Premier League itself are about trying to find a resolution on exactly how the financial regulatory system will work in the future," Masters added.

"There's an area of disagreement between us on how cost controls are going to work. Because obviously if you're going to put more money into a system, that system has to be properly regulated. That system has yet to be fully agreed on how Championship clubs, how relegated clubs and how Premier League clubs operate a common system."

Masters admitted there was also still a debate among his clubs over how extra funding to the EFL should be paid.

EFL chairman Rick Parry told the same hearing that his competition was prepared to accept an amount that would equate to 14.75 per cent of the two competitions' net media revenues, which he said worked out at an extra £125million a year.

"The existing mechanisms that are in place don't cover this particular formulation that we're trying to do. So it needs to be a fresh agreement on how this is funded," Masters said.

"We have made proposals to clubs, they are considering them, we don't yet have a unified position on it. Our proposals are in broad terms to use some of the existing mechanisms and cost allocations within the Premier League rulebook at the moment, and also to increase the transfer levy by a small percentage to pay for part of it."

In the absence of any deal, the EFL has said any changes to the domestic calendar to help top-flight clubs cope with the expansion of UEFA competitions will not take place.

Last month the EFL announced it would continue with the two-leg format for the Carabao Cup semi-finals next season.

Votes are not expected to take place either on cost control measures or on extra funding at this week's meetings.

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