- Government-recommended clubs pay a minimum of 80 percent of operating costs
- The remaining 20 percent of costs will be covered by EFL and National League
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Premier League clubs are facing a bill of at least £106 million to fund the first ten years of the new independent regulator in the form of a mandatory government levy.
Mail Sport has learned that the government has recommended that top clubs pay at least 80 percent of the regulator’s operating costs, which officials have predicted will reach £132.8 million in the first decade.
In addition, the Premier League will be forced to repay the vast majority of the regulator’s start-up costs, which will initially be funded by the government, costing them millions more.
Guidance issued by the Department for Culture, Media and Sport, seen by Mail Sport, states that ‘these recovery costs, once established, would therefore be added to the levy’, with the government also making clear that ‘it is our expectation is that at least 80 per cent of the levy will be paid by Premier League clubs.’
The remaining 20 per cent cost of approximately £2.6 million per year will be shared on a proportionate basis between the 72 EFL and 24 National League clubs, with smaller clubs paying the least. The Premier League are yet to discuss how their £10.6m-a-year bill will be divided, which could lead to more internal row between the clubs.
Premier League clubs will have to pay a mandatory government levy to fund a new football regulator
Richard Masters has spoken out about his concerns over the regulation of the top flight
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The Premier League remains fiercely and vocally opposed to the independent regulator, and the additional costs of more than £100 million are likely to increase their frustration.
The upcoming second reading of the Football Governance Bill has also exacerbated tensions with the EFL, with the Premier League choosing to pause discussions over an increased funding package for the lower divisions.
Premier League chief executive Richard Masters warned earlier this week that the regulator could undermine the Premier League’s global success and help rivals such as La Liga, the Bundeslegia and Serie A.
“There is a risk that regulation will undermine the global success of the Premier League, wounding the goose that provides English football’s golden egg,” Masters wrote in The Times.
Lucy Frazer was speaking at Leyton Orient following the announcement of the new Football Governance Bill last month
“It’s a risk to regulate an industry that has worked so hard to lead the world, especially when none of its competitors are subject to the same regulations.” Those competitors are relishing the prospect of the Premier League being uniquely restricted.
“Empires rise and fall – and while I am confident in the league’s immediate future, it would be a mistake to be complacent about our place as the most popular league in the world.”