The Premier League is redistributing the prize money allocation each season that will benefit the top clubs in the English top flight. Extending from the 10-point deduction from Everton, the Premier League wants to shake up the distribution of finances. This is part of the ‘New Deal For Football,’ which is the Premier League’s proposal to generate more money for the clubs in the Championship, League One and League Two.
While the main part of that deal helps lower leagues, part of it also deals with how money spreads out in the Premier League. Currently, the money goes out on a ratio. The top club earns a ratio of 1.6 to 1 compared to the bottom club. For example, Manchester City earned $200 million as champions last season. Southampton, which finished bottom, earned $125 million. According to the Telegraph, the top clubs in the Premier League want to bump that ratio to 1.8.
The top clubs attribute the recalibration to international growth in league revenue. Based on inflation, teams at the bottom get a favorable return in prize money. Also, the New Deal For Football will sap more money from those top clubs. In essence, the clubs at risk of relegation are more inclined to give more to the teams in the Championship, League One and League Two. This is the effort of clubs like Luton Town, Sheffield United and Burnley to bring more money to the league they just came from. It looks certain that the Premier League clubs will send an extra $162 million to lower-league clubs. The only thing at debate is where that money comes from.
Top Premier League clubs want prize money increased after Everton debacle
One of the biggest reasons for the debate about finances stems from Everton’s recent points deduction. As a result of Everton’s losses over a three-year period, clubs and fans alike are calling for new financial regulation. In the lower leagues, clubs are at constant risk of losing money. Some of the recent punishments for financial irregularities include Everton, Derby County and Reading. Each picked up a points deduction.
However, the top clubs in the Premier League are not as eager to give goodwill to the lower-league clubs. Their opposition to how the Premier League plans to pay for the New Deal For Football is leading to the increased prize money distribution.
New prize money ratio comes in the 2025/26 season
This season and the following one are locked in, financially speaking. The New Deal For Football is not yet ratified either, which means the Premier League can still find a way to pay the lower leagues the aforementioned $162 million. Likewise, the ratio of 1.8 for the top clubs in the Premier League in prize money is also confirmed.
Starting in the 2025/26 season, the clubs finishing at the top of the Premier League could earn tens of millions more in prize money with this new ratio. There are already concerns that this will increase the disparity in the top teams in the table. As a result, the Premier League would lose parity.
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