Manchester United and Liverpool are the driving force behind the biggest changes to English football in a generation and an extraordinary overhaul of the Premier League, The Daily Telegraph can reveal.
The two clubs have worked together on a radical set of proposals — called “Project Big Picture” - that will reshape the finances of the game. The Premier League, the most lucrative sports league in the world, would see a reduction to 18 teams, and controlling power in the hands of the biggest clubs.
In return for tearing up many of the rules that have governed the game since the Premier League’s inception in 1992 there will be £250 million rescue package to the Football League to see them through the Covid crisis.
The Daily Telegraph can reveal the details of the working document “Revitalisation” authored by Liverpool’s American ownership Fenway Sports Group with support from United. It anticipates the backing of the other members of the so-called big six, Manchester City, Arsenal, Chelsea and Tottenham Hotspur.
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In a remarkable set of proposals, which will send shockwaves through the game, 25 per cent of the Premier League’s annual revenue will go to the EFL clubs with £250 million paid up front to see them through the current crisis. There would also be a gift of £100 million to sustain the Football Association.
However, there would be an abolition of the one-club, one-vote principle that has sustained the Premier League since its inception as well as the abolition of the threshold of 14 votes to pass any decision or regulation change.
Under the new proposals, the Community Shield would be abolished
Under the new proposals, the Community Shield would be abolished CREDIT: Shutterstock
Under the new proposals, the League Cup and the Community Shield would be abolished. There have been additional discussions that the League Cup would survive but without the participation of the clubs in Europe.
There would be two automatic promotion places for Championship clubs, but the third, fourth and fifth placed clubs would be in a play-off tournament with the 16th placed Premier League club.
The nine clubs who have been in the Premier League for the longest - which includes the big six - would dictate its running in every aspect and would be free to play more games in the expanded Champions League that is anticipated from the 2024-2025 season onwards.
As well as the Premier League dropping from 20 clubs to 18, there would be 24 in each of the Championship, League One and League Two making a total of 90.
The plan is supported by the EFL chairman Rick Parry who has held talks with Liverpool’s principal owner, the American investor John W Henry, and shareholder and director Mike Gordon. In addition, Parry has spoken to the Glazer family, who own United.
The plan is supported by the EFL chairman Rick Parry
The plan is supported by the EFL chairman Rick Parry CREDIT: AP
The talks began in 2017 but have been accelerated since the coronavirus pandemic has thrust football into the grip of crisis with no fans in stadiums until March at the earliest. Liverpool and United are prepared for a fierce debate over their proposals but they want them implemented as soon as possible.
The Revitalisation document calls for immediate action to cut dramatically what it calls the “revenue chasm” in earnings from television contracts between the Premier League and the EFL. In order to discourage Championship clubs from gambling recklessly on promotion, the parachute payments system would be abolished in favour of the 25 per cent share of Premier League revenue being shared more equitably among EFL clubs.
Under proposals for the new model of distribution of television revenue in the Premier League, Fenway, the driving force behind the document, insist there would be no greater share for the top six. Their stated aim is to eliminate the huge gap in earnings between Premier League and EFL clubs while in return having a greater control of the decisions made by the Premier League.
The document says: “A reset of the economics and governance of the English football pyramid is long overdue”.
The proposals also rewrite the Premier League’s 20-club democracy in favour of placing huge power in the hands of the nine clubs with the longest continual stay in the division. As things stand that is the big six, as well as Everton, Southampton and West Ham. Those nine clubs afforded “long-term shareholder status” would have unprecedented power, with the votes of just six of them required to make sweeping changes. These clubs would even be able to veto a new owner taking over a rival club.
The power will move into the hands of the nine clubs with the longest continual stay in the division - which includes West Ham
The power would move into the hands of the nine clubs with the longest continual stay in the division - which includes West Ham CREDIT: Getty Images
In an exclusive interview with The Daily Telegraph, Parry said that he had the support of many of his 72 members, many currently facing financial ruin, to go ahead with the plan. He said: “What do we do? Leave it exactly as it is and allow the smaller clubs to wither? Or do we do something about it? And you can’t do something about it without something changing. And the view of our clubs is if the [big] six get some benefits but the 72 also do, we are up for it.”
He accepted there would be opposition from the Premier League clubs outside the big six who would see it as detrimental to their financial prospects with less money and two fewer places in the top flight.
“It is definitely going to be challenging and it is an enormous change so that won’t be without some pain,” Parry said: “Do I genuinely think it’s for the greater good of the game as a whole? Absolutely. And if the [big] six are deriving some benefit then why shouldn’t they. Why wouldn’t they put their names to this otherwise?”
The proposals include:
£250 million immediately to the EFL to compensate its clubs for lost matchday revenue, deducted from future television revenue earnings and financed by a loan taken out by the Premier League
Special status for the nine longest serving clubs — and the vote of only six of those “long-term shareholders” required to make major changes, including amending rules and regulations, agreeing contracts, removal of the chief executive, and a wide-ranging veto including on club ownership
Premier League to go to 18 clubs from 20
£100 million one-off gift to the FA to cover its coronavirus losses, the non-league game, the women’s game, the grassroots
8.5 per cent of annual net Premier League revenue to go on operating costs and “good causes” including the FA
From the remainder, 25 per cent of all combined Premier League and Football League revenues to go to the EFL clubs
Six per cent of Premier League gross revenues to pay for stadium improvements across the top four divisions, calculated at £100 per seat
New rules for the distribution of Premier League television income, overseas and domestic, including proposals that base one portion on performance over three years in the league
The abolition of the League Cup and the Community Shield
24 clubs each in the Championship, League One and League Two reducing the professional game overall from 92 clubs to 90
A women's professional league independent of the Premier League or the FA
Two sides automatically relegated from the Premier League every season and the top two Championship teams promoted. The 16th place Premier League club in a play-off tournament with the Championship’s third, fourth and fifth placed teams.
Financial fair play regulations in line with Uefa, and full access for Premier League executive to club accounts
A fan charter including capping of away tickets at £20, away travel subsidised, a focus on a return to safe standing, a minimum away allocation of eight per cent capacity
Later Premier League start in August to give greater scope for pre-season friendlies, and requirement for all clubs to compete once every five years in a summer Premier League tournament
Huge changes to loan system allowing clubs to have 15 players out on loan domestically at any one time and up to four at a single club in England
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Gav Mack11 Oct 2020 12:35PM
I wrote a piece on this about 6 weeks ago, edited it with my ideas and then posted on my social media on Saturday 10th October
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Pale Blue Dot11 Oct 2020 12:35PM
These proposals are an outrageous attempt at forming a protectionist cartel. The idea that the potential ownership of a club can be vetoed by such a cartel leaves me speechless.
1LikeReply
Jonathan Karmi11 Oct 2020 12:34PM
Two ugly things in these proposals :-
1) The ability of the big six to veto changes of ownership, in other words they are entrenching their dominance at the expense of other clubs, who might be lucky enough to attract new mega-rich owners as Chelsea and Man City have done.
2) The ability to send a ridiculous number of players out on loan. That enables the big six to buy up and retain nearly all of the talented 15 to 20 year olds who are out there. It will make it much more difficult for a Championship club for example, to take a highly talented young player, develop him and then eventually sell him off for £20m to £30m.
Apart from these ugly elements, I generally support the proposals. It's important to keep the EFL teams going as traditionally they have been the foundation of the English game.
1LikeReply
Peter Bolt11 Oct 2020 12:32PM
London & The North West .
Nobody else will have a say .
The only other interested parties will be the TV Company`s . ( where incidentally are to be found the TV Companies )
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Steve Townsend11 Oct 2020 12:28PM
Only a matter of time then before relegation from the EPL is removed completely to preserve the status of the “elite” clubs forever.
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Norman Wilson11 Oct 2020 12:26PM
So now we know why the Premier League didn't want the PIF takeover of Newcastle to go through.
The Premier League is a cartel set up to look after the interests of the self declared "Big Six" nothing more.
1LikeReply
E Bee11 Oct 2020 12:25PM
Ridiculous!
The only thing i would like to see is a BBC football channel where it only streams football matches on a rolling basis. The BBC should be given these matches free, one week after the match is played.
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Barry Guevara11 Oct 2020 12:24PM
I support one of the so called elite clubs but the second best thing to happen in football over the past decade was Leicester winning the title. Surely reducing the teams down to 18, lessens the chances of something like that happening again.
I'm left think greedy *******.
3LikeReply
Born Londoner11 Oct 2020 12:20PM
As a supporter of a premier league club not in the “big six” or the “longest serving 9”, these proposals disgust me. I wish the premier league only got a fraction of its income and these big clubs learnt some humility. They are the ugly face of globalisation.
3LikeReply
JM Hall11 Oct 2020 12:18PM
That pain Man Utd will feel will be the bullet they shot into their foot when they finish 29th.
1LikeReply
john rodger11 Oct 2020 12:17PM
it was always heading that way. PL are terrified of a breakaway euro league. the rest of us can look forward to paying higher subscriptions just to watch our teams win nothing! not me.
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Paul Hurved11 Oct 2020 12:15PM
6 greedy b@stards wanting even more power. Things would never change in the future
6LikeReply
Splodger fisher11 Oct 2020 12:13PM
Sky have taken our footy,cricket,golf,boxing,and god know what else.
Like Amazon,they have become TOO POWERFUL.
They need a haircut,and we need to be able to stream our sports..for a fair price.
3LikeReply
Green Fly11 Oct 2020 12:09PM
Christmas has come early for Southampton and West Ham.
It's not so very long since they were in the Championship. This demonstrates just how volatile the Premier league is and how inappropriate a selective system based on a snapshot in time as proposed is.
I don't support any Premier League side, but I'd be spitting blood if I were an Aston Villa or Leicester City supporter.
A classic case of "I'm all right Jack."
4LikeReply
Green Fly11 Oct 2020 12:15PM |  |
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