£250m rescue package agreed for EFL clubs

Championship clubs including Barnsley, Huddersfield Town, Middlesbrough, Rotherham United and Sheffield Wednesday will be able to receive interest-free loans worth a combined total of £200m.

Individually, it amounts to £8.3m per club, potentially. The loan facility is provided to support second-tier outfits to meet PAYE liabilities up to the end of June 2021.

The loans must be paid back by June 2024.

Meanwhile, League One and Two clubs - incorporating the likes of Bradford City, Doncaster Rovers, Harrogate Town and Hull City - will be able to access grants worth £50m.

A £30million grant to be paid immediately to clubs in those divisions for distribution based on lost gate receipts in respect of the 2019-20 and 2020-21 season.

Individual League One clubs will receive minimum payments worth £375,000, while League Two clubs can be allocated monies worth £250,000. The remaining £15m will be distributed using a lost gate revenue share calculation, which will be approved by both the EFL and the Premier League.

In addition, a further £20m ‘Monitored Grant’ is to be provided with clubs able to apply for it based on ‘need’, with a joint EFL and Premier League panel to determine club eligibility.

An EFL statement read: "The EFL and the Premier League have today concluded negotiations on a rescue package and distress fund to address the immediate financial challenges faced by EFL Clubs arising as a result of the Covid-19 pandemic.

"A fund of £50m in the form of a grant and monitored grant payments has been agreed for League One and Two clubs while the Premier League will provide a further financial commitment to assist the EFL in securing a £200m loan facility that Championship clubs will be able to utilise interest free.

"Premier League clubs have given their final approval to the agreement at today’s shareholder meeting and this followed earlier approval of the deal by the EFL Board, acting on behalf of its membership."

Commenting on the deal, EFL chair Rick Parry said: "Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.

"I am pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.

"I would like to thank Richard Masters and Gary Hoffman for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most.”

Richard Masters, Premier League Chief Executive added: "The Premier League is a huge supporter of the football pyramid and is well aware of the important role clubs play in their communities. Our commitment is that no EFL club need go out of business due to COVID-19.

"All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League Shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.

"We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times.”