Lower league clubs in England are at risk of collapsing following the financial problems with the Championship, League One and League Two. In 2019, Bury were expelled from the football league with a series of bad debts rising. To stop that happening again there is a solidarity package that the ‘big six’ are supposed to take part in.
What is the solidarity package?
The solidarity package would see ‘big six’ clubs such as Liverpool and Manchester United, side filter money into the lower English divisions over a six year period. The amount over the six years is projected to reach £900m.
However, the ‘big six’ clubs remain reluctant on the idea. A vote on the matter is yet to be held and the EFL are said to be becoming increasingly impatient.
The 20 top-flight clubs met at the Premier League shareholders meeting on Tuesday. The objective with a financial package high on the agenda with the finer details still to be agreed. Clubs are still determined to see the ‘big six’ pay a bigger share of the revenue which will be shared throughout the wider football pyramid.
The lesser clubs argue that a sliding scale payment system based on sporting merit is unfair and that overall turnover should be factored in.
The need for this huge measurement of financial support comes from struggling EFL clubs in recent years including Derby County, Reading, Wigan Athletic and Bolton Wanderers. All these clubs have unfortunately faced points deductions for their financial struggles. Of course, we all know what happened to Bury as mentioned above.
In June, a report by the Culture, Media and Sport Select Committee said that if no funding plan was reached soon, then the Government should accelerate bringing in the regulator to impose a deal.
Dame Caroline Dinenage MP said: “Unless the football authorities get their act together soon on agreeing a fairer share of revenue, we risk more clubs collapsing, with the devastating impact that can have on local communities.”
Who are the ‘big six’ clubs?
The big six clubs are Liverpool, Manchester United, Arsenal, Chelsea, Manchester City and Tottenham. Liverpool and Manchester United alone are worth over £3bn.
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