English football’s powerbrokers are to hold a summit on the biggest shake-up of the domestic game for a generation, with significant changes to the FA Cup, Carabao Cup and Community Shield on the table.
The six leading figures in the Premier League, FA and EFL will meet in person for the first time today to thrash out proposals from the top-flight clubs. These include scrapping FA Cup replays, changing the Carabao Cup so that clubs in European competitions only field junior sides, and moving the Community Shield from its traditional position as the curtain-raiser to the season.
The demands are in return for the Premier League sharing more of its money with the lower leagues — the EFL wants an extra £300 million a year, but the top-flight clubs have only agreed to about £160 million.
The shake-up has been put forward by the Premier League as part of what it calls “A New Deal For Football” that it hopes will reduce fixture congestion from 2024. It could lead to the biggest changes in the English game since the Premier League was launched 30 years ago. The meeting will involve the new Premier League chairwoman, Alison Brittain, who took over this week, with her counterparts at the FA, Debbie Hewitt, and the EFL, Rick Parry. Richard Masters, the Premier League chief executive, will be there along with his opposite numbers, Mark Bullingham at the FA, and the EFL’s Trevor Birch.
It will take place against the background of the government publishing a white paper in the next few weeks outlining its plans for a statutory independent regulator with the power to intervene on a financial settlement if the three bodies do not reach an agreement.
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It is understood that the EFL would be open to changing the Carabao Cup — the options are for clubs in Europe not to take part at all or to field under-21 sides — but only for what they deem is an acceptable financial settlement.
The FA Cup still has replays up to the fourth round, but the “new deal” proposes replays are scrapped from the third round onwards, when top-flight clubs join.
The future of the Community Shield — the match between the Premier League champions and the FA Cup winners that takes place the Sunday before the first weekend of the Premier League season — is also on the table.
The bigger clubs believe the timing of it disrupts their pre-season build-up as well as lucrative overseas tours. Suggested alternatives include playing it as part of the opening weekend or mid-season, or for it to be in an international market, such as the United States, to promote the Premier League globally.
At least one club would like it to be an “All Stars” game, with each Premier League team providing a maximum of two players and playing against the top stars from other European leagues.
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The FA will go into the talks to try to secure more money for grassroots football, as was recommended by Tracey Crouch’s fan-led review of football, and it will even explore selling its TV rights centrally via the Premier League if that would lead to increased revenues. Lucy Powell, Labour’s shadow culture secretary, said a financial settlement was needed urgently, as well as a regulator. “Football bodies have missed the deadline to agree a fair funding settlement by a full year,” she said. “Ministers keep saying they should come to an agreement, yet without legislation and an independent football regulator, this issue will never be resolved.
“We cannot wait another year for more lower league clubs to lose their grounds, dig themselves further into debt, and face potential collapse, while Premier League spending breaks records. The economics of football is broken for the majority of clubs.”
It is unlikely that the independent regulator will be in place for another two years — potentially not until the start of the 2025-26 season. It is understood that it will stand separately from football bodies, and clubs will have to present sustainable business plans every year to obtain a licence to play in the competition.
The regulator would also oversee the owners’ and directors’ tests for those people involved in clubs.
Q&A: What does it all mean?
Why are such radical changes being proposed to the FA Cup, League Cup and Community Shield?
Fixture congestion is a problem and it is only going to get worse with Uefa’s expanded Champions League from 2024 and Fifa’s proposed 32-team Club World Cup from 2025. These proposals are seeking to address that.
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Are there other ways of resolving fixture congestion?
The Premier League could reduce itself from 20 to 18 teams, as was the original plan in 1992, but that would never get voted through.
Isn’t this about money, too?
Yes, very much so. The Tracey Crouch fan-led review recommended that the Premier League increases the amount it pays to the three EFL divisions, and that was strongly backed by the government, so the competition changes are a quid pro quo put forward by the Premier League clubs. The EFL wants £300 million extra a year, but the clubs are so far only prepared to go up to £160 million.
How would that money be distributed?
The most likely plan would involve parachute payments being greatly reduced, with the money distributed depending on league table position.
Would each Premier League club contribute equally to the settlement?
There is a broad agreement that it should reflect the amount each club earns from Premier League TV money, but the small and medium-sized clubs want income from the Champions League to be part of the equation. That is being fiercely resisted by the bigger clubs, so there is some deadlock on that front.
What else is on the table apart from calendar changes and cash?
Rules around work permits for overseas players and managers — Premier League clubs want it to be easier to sign foreign players as Brexit has made it more difficult. The FA will resist anything it believes will have a negative impact on the England team.
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What if the Premier League, FA and EFL fail to reach a settlement?
An independent regulator for football is on its way. It will have “backstop powers” to intervene and fix a settlement if the football bodies fail to reach an agreement.
When will this regulator be in position?
It will take some time for the legislative process to be completed and then the body to be set up. Those with knowledge of the process say it is unlikely to be ready to operate until 2025.
What other powers will it have?
Its main function will be to act as a licensing body. Clubs will have to present business plans every year, laying out income and expenditure, to show they are sustainable and obtain a licence to play. A similar organisation operates in German football and clubs have been told to drop down two divisions if their finances have not been satisfactory. The regulator will also carry out checks on owners and directors.
Will the regulator take over disciplinary functions from the FA or leagues or oversee financial fair play rules?
No, that will not be part of its remit. There are concerns that would be regarded by Fifa as government interference in the sport.
How large an organisation will the regulator be?
It depends whether it is a stand-alone body. If so, it could be as large as 50 people, but there have been suggestions it could operate as an arm of the Financial Conduct Authority to reduce costs.
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How will the regulator be funded?
Probably via a levy on clubs, based on their income and linked to broadcast revenues.
