City are set for a big boost with Premier League clubs agreeing a deal
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Leicester City are set for a boost(Image: Mike Egerton/PA Wire)
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Leicester City are closing in on a cash boost with the 'new deal' between the Premier League and EFL close to an agreement.
The deal has been agreed between the 20 Premier League clubs and now just needs final sign-off, handing EFL clubs including City a much-needed cash boost.
That development has emerged after the Independent Football Regulator gave an update today, warning English football is "standing on the edge of financial disaster" due to the "massive contradiction" between the wealth of the Premier League and clubs in the rest of the pyramid.
The regulator's State of the Game report, which was published on Tuesday, has revealed that nearly two thirds of EFL and National League clubs are technically insolvent where their liabilities are greater than their assets.
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It also says that more than a quarter of clubs would not be able to survive for more than 30 days if owners pulled their funding. “At the heart of English football’s success is a massive contradiction," IFR chair David Kogan said.
"While some of our clubs are among the richest and most competitive in the world, others are standing on the edge of financial disaster. Skyrocketing revenues have been outpaced by costs which in turn have pushed up debt, loss-making and an over-reliance on owner funding.
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“A significant number of clubs that told us they would not survive if their owners walked away. This lack of resilience can no longer be ignored. Anyone reading this report can be in no doubt about the need for intervention.
“Football has always been bloody risky but now if you fail the failure is much harder to take because the numbers are so much bigger and that’s where we come in.”
The 245-page report also reveals that 94 percent of English football's top 116 clubs are making a loss and the average club revenue has increased 2,100 percent since the Premier League was formed in 1992.
It also highlights the "substantial risk" of relegation from the Premier League as clubs suffer a revenue drop of 70 percent. City have been relegated from the top flight twice in the last two years and now find themselves in League One.
The IFR has also set out a six-point plan while also revealing the full details of the "financial deal" between the Premier League and EFL, which includes scaling back parachute payments. The plan focuses on financial stability, including clubs improving how they manage financial risks and clubs showing how they take fans' views into account.
It has also made it clear that the Premier League must reach agreement with the EFL, which is understood to be getting closer, or the IFR will step in to force the top flight to find more cash for the rest of the pyramid.
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