League One and Two clubs set for £50m Premier League rescue package

League One and Two clubs are set to receive a £50m coronavirus rescue package from the Premier League to make up for lost matchday revenue.

Talks on Thursday made a breakthrough after the Premier League brought forward a separate package for Championship clubs. 

The package, understood to be made up of £20m in grants and £30m in loans to help clubs cope with the absence of matchday revenue, was initially rejected by the EFL because it felt the Championship was excluded from the offer.

In a statement, the EFL said: “Following a comprehensive debate in all three divisions, a collective agreement in principle was made to move forward and finalise the negotiations, with Championship clubs making it clear today that they wanted to ensure their colleagues in League One and League Two received the proposed £50m financial support package to cover gate losses for 2019-20 and 2020-21 as soon as is practically possible.

“Championship clubs also acknowledged that discussions in respect of the levels of support they will receive will remain ongoing.”

The EFL statement continued: “The EFL believes that today represents a significant step forward and is hopeful that a final agreement on the short term rescue package across all three divisions can be reached imminently which will provide much needed support, clarity and certainty for all EFL clubs at a time when they need it most.

“In addition to finalising the short-term financial issues, clubs were today informed that the EFL will contribute fully in the Premier League’s strategic review to consider the future structure and financing of English football, and will hopefully have a direct and positive impact on a more sustainable EFL in the future.”

The Premier League’s strategic review has been stepped up following the emergence of Project Big Picture proposals last month.

More to follow…

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