Government frustration mounts over Premier League and EFL failure to reach £250m bailout compromise

Richard Masters, Chief Executive of Premier League, addresses journalists during a media briefing on February 04, 2020 -  Alex Morton/Getty Images for Premier League
Richard Masters, Chief Executive of Premier League, addresses journalists during a media briefing on February 04, 2020 - Alex Morton/Getty Images for Premier League

Government figures are growing increasingly frustrated at delays by the Premier League in reaching agreement over the English Football League's £250million bail-out demand.

A meeting between top-tier clubs on Tuesday was described as "measured" but inconclusive as executives expressed lingering concerns over the sums involved before talks were suspended again until next Tuesday.

Concern is now mounting that deliberations over how the world's wealthiest league will help are not moving at the same pace as the Treasury is in finding rescue packages for the entire sporting sector.

On Sunday, Oliver Dowden, the Culture Secretary, had said he was "hopeful" the Premier League would this week confirm a rescue package for the pyramid.

The Department for Digital, Culture, Media and Sport, will continue in the coming days to encourage the leagues to work together to find a solution.There is recognition within the department that many Premier League clubs have already helped in terms of supporting communities with food supplies and offering up facilities for emergency services during the pandemic.

However, a senior Whitehall source said football's ongoing delays were "remarkable". "HM Treasury has previously developed schemes to save tens of millions of jobs in the space of days," he added. "It seems a bit flat-footed of the Premier League."

All sports have been told to provide full details to the Government by end of play on Wednesday so it has time to devise a likely hybrid of loans and grants within the next fortnight. However, Mr Dowden has consistently insisted the Premier League must “step up to the plate” in regard to the EFL clubs.

As The Telegraph disclosed last week, almost all the 20 top-flight clubs are resigned to a rescue package of some sorts but concerns remain over a £250m cheque that includes the Championship. One reservation expressed by smaller top-tier clubs is that their financial outlooks are already broadly in line with effective rivals in the division below under the parachute payment system. As a result, the Premier League is expected to require assurances that the second tier will curb excessive wage spending.

A lack of detail over where the bail-out is needed, potential assurances over future spending and measures to ensure the smaller top-tier clubs do not "hand unnecessary advances to Championship rivals" are said to be the remaining hurdles.

Talks have also been delayed by the possibility of the Government contributing in some way to the overall package. Damian Collins MP, the former chairman of the Digital, Culture, Media and Sport select committee, and the former FA chairmen Greg Dyke and Lord Triesman are among signatories to agree that ministers rather than the Premier League should take responsibility.

Sources close to talks hinted the Premier League may end up agreeing on offering the EFL a counter offer instead of agreeing outright to the £250m sum which the lower leagues say is for ticket revenue alone.

While kicking the can down the road on bail-outs, the top tier instead agreed upon a new rule that would result in the league paying for Covid testing for all upcoming cup ties against EFL opposition. The vote comes after it emerged Hull City turned down an offer by West Ham to have players tested ahead of their Carabao Cup match.

The clubs also agreed upon a potential points-per-game system if the season is curtailed due to Covid. They have yet to vote upon a potential threshold on which the season would be scrapped altogether. A most likely curtailment option is that the season would be scrapped if less than 75 per cent of games had been completed. Last season Liverpool had played 76 per cent prior to Project Restart.

The EFL, meanwhile, meets on Wednesay, having already indicated that a salary cap in the Championship may be in the offing. Director Mark Ashton, the Bristol City chief executive, told Telegraph Sport on Saturday how the rescue package would form part of an overall reset in expenditure. The £250m package was a "robust figure", he added, and based only on loss ticket revenue across the four divisions.

The Telegraph disclosed on Monday how - in total - the Government is expected to be asked for a support package worth more than £2 billion. The sporting sector fears that up to 300,000 roles could be wiped out as the Covid-19 crisis causes another six months of crowd closures and restrictions.