The Premier League and the EFL have been negotiating a new financial distribution key for years, but previous attempts to reach an agreement have failed due to disagreements among the Premier League clubs. The deal includes the removal of the return in the semi-finals of the League Cup, a move that has been a point of contention between the two parties. The Premier League wants to avoid the extra money going directly to higher player salaries, and instead wants to make EFL clubs less dependent on financial support from their owners.
The Premier League proposes 80, 12, and 8 percent allocations for Championship, League One, and League Two clubs respectively, while the EFL wants to see more money flowing to the lower two divisions, with 75, 15, and 10 percent allocations respectively. The two parties are still 30 million euros apart, with the exact figures for the lower two divisions still a point of contention.
The Premier League's proposal includes a 20 million euro emergency fund for clubs in financial trouble and a 15 percent investment in infrastructure. The Premier League has also proposed that three promotion and relegation places be introduced between the League Two and the National League. If no agreement is reached, the independent regulator may come into play.