The EFL and Premier League have announced that they have agreed a rescue package and distress fund aimed at addressing the financial challenges facing EFL clubs due to the coronavirus pandemic.
An EFL statement reads: "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 £50 million 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 £200 million 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.”
EFL chair, Rick Parry, said: "Our overarching 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, said: "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.”
The relief package for clubs in Leagues One and Two will provide a combined fund of £50 million with a total of £30 million paid to all 48 clubs as a grant distributed based on lost gate receipts in 2019/20 and 2020/21.
Each club will receive a payment of a minimum of £375,000 in League One and £250,000 in League Two.
The remaining £15 million will be distributed using a lost gate revenue share calculation, to be approved by both the EFL and the Premier League.
An additional £20 million will be available on application as a ‘monitored grant’.
Clubs in receipt of a grant from the fund will be subject to restrictions in respect to their transfer spend and player wages. If they breach of those restrictions they will be required to repay that grant.
For the Championship, the Premier League has also agreed to provide a payment commitment of up to £15 million to cover interest, arrangement fees and professional fees to allow the EFL to secure a £200 million loan facility that it will then on-lend to clubs interest free.”