Premier League clubs deadlocked over cash bailout for EFL amid £200m warning

Premier League clubs are split over a cash bail out for the EFL.

The 20 clubs held an hour long video conference meeting on Tuesday and remain deadlocked over pleas to help cash-strapped teams in the Championship, League One and Two.

That comes despite warnings from EFL clubs that they will face financial ruin unless the Premier League or the Government step in after the return of fans to stadiums was put on hold because of the coronavirus pandemic.

EFL chairman Rick Parry has warned of a £200m financial blackhole because of the ongoing crisis and League One and Two clubs insist they could be out of business within weeks.

But the Premier League clubs feel that because the Government has blocked the return of fans then it is down to them to try and ease the cash crisis.

They are also of the view that they have already brought forward £125m worth in funds to the EFL last season and have got their own pressing financial concerns because big clubs can lose up to £4m-a-game in gate receipts with no fans.

Government ministers have pointed to a summer of big spending among Premier League clubs – with Chelsea spending in excess of £200m – as a reason why the top flight have got cash to look after their own.

But one source argued that clubs have got to carry on spending because they have to stay competitive.

The value of finishing in European places has never been higher and that some EFL owners in the Championship are wealthier than Premier League counterparts.

There is also a feeling that asking for £200m-plus is unrealistic and is just looking for the Premier League to wipe out all their debts rather than an emergency bail out.

Government officials have asked for the Premier League and EFL chiefs to report back by Wednesday with potential losses so they can see the scale of the problem.

Premier League clubs have got varying degrees of sympathy towards the EFL and their plight but there is a feeling that the Government “moved the goalposts” on fans so should step in.

Clubs will meet again on Tuesday and discussions are ongoing but it will be down to the clubs yo come up with a plan over what they deem an acceptable offer but it is very clear that there is no immediate solution.

They did vote on putting on plans for a potential curtailment but have yet to decide the threshold of when that kick in with between 66 or 75 games the likely margin.

Premier League clubs also approved plans to formally pay for EFL clubs to undergo coronavirus tests when they play each other in the domestic cup competitions.

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