By Andrew Warshaw
October 15 – Just days after radical plans for a major overhaul of English football became public, the proposed shake-up led by Liverpool and Manchester United was rejected Wednesday by Premier League clubs.
An emergency meeting of the 20 top-flight sides all but killed off what was dubbed Project Big Picture following widespread condemnation of an alleged power grab by the so-called ‘Big Six’ clubs.
The shake-up would have resulted in nine clubs – the traditional ‘Big Six’ plus the three longest serving Premier League teams at any moment in time – having all the voting power, effectively putting them in control of the world’s most commercially successful league.
Under the proposals the Premier League would have been reduced to 18 teams and the League Cup scrapped, the sweetener for English Football League clubs being an immediate £250 million to compensate for loss of match day revenue due to Covid-19 – and a £100 million carrot to the English FA.
But it cut no ice with Football Association chairman Greg Clarke who was so peeved by the idea that he even threatened European bans for the clubs involved in Project Big Picture.
By contrast, EFL chairman Rick Parry viewed the plans as “radical solutions” to fix a “broken system”, which has resulted in numerous Championship, League One and League Two clubs being pushed to the brink of financial meltdown.
As a compromise at Wednesday’s meeting, Premier League clubs agreed a further £50 million bailout for League One and Two teams as well as a promise of widespread financial reform.
For EFL club chairman the £50 million bail out is a lot less than the £250 million that their chairman Rick Parry was pushing them to accept, and which they would have gratefully taken. But both sums are considerably less than the £375 million that Parry and his executive rejected without consulting his club chairmen two days before Parry launched the ‘Project Big Picture’ proposal.
That offer was from US-based venture capitalists TPG Capital for a reported 10% stake in the EFL and control of its commercial rights. Parry will have to face his clubs to explain why they weren’t given the opportunity to consider this funding.
A Premier League statement read: “Premier League Shareholders today unanimously agreed to work together as a 20-club collective on a strategic plan for the future structures and financing of English football.
“Premier League clubs also agreed that Project Big Picture will not be endorsed by the Premier League, any of its clubs or The FA.”
“Also at today’s meeting it was agreed to make available a rescue package which aims to ensure that League One and League Two clubs will not go out of business as a result of the financial impact of Covid-19 and be able to complete the 2020/21 season.
“League One and League Two clubs rely more heavily on matchday revenue and have fewer resources at their disposal than Championship or Premier League clubs and are therefore more at risk, especially at a time when fans are excluded from attending matches.
“This offer will consist of grants and interest-free loans totalling a further £50 million on top of the £27.2 million solidarity payments already advanced to League One and League Two this year, making a total of £77.2 million. Discussions will also continue with the EFL regarding Championship clubs’ financial needs. This addresses Government concerns about lower league clubs’ financial fragility.”
It is understood that Premier League clubs were uncomfortable at gifting Championship clubs money (many have well backed and wealthily underpinned ownership), but would consider loans.
In a separate statement, Premier League chief executive Richard Masters added: “Clearly there’s some frustration that a proposal that hadn’t had the input from the clubs has been pushed so hard in public.
“We don’t have any beef with the EFL. We have a historic relationship – we want that to be constructive. It was a candid, positive and – in the end – a unanimous meeting. We decided to move on from ‘Big Picture’ and move on to a new review process.
“Solidarity is incredibly strong so while there’s been a lot said, I don’t think it’s irreparably damaged the Premier League.”
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