A significant financial windfall earmarked for EFL clubs like Stevenage is in jeopardy due to Manchester City’s decision to sue the Premier League. The reigning champions have initiated legal action to abolish rules that limit the amount of sponsorship money that can be offered by companies linked to club owners.
The legal case, which starts on Monday and is expected to last two weeks, could have serious repercussions for the EFL. According to The Times, the dispute has already disrupted the finalization of a £900m funding deal intended for lower league clubs, including those in League One.
Sources from some Premier League clubs have indicated that the court case is a key factor in the failure to reach an agreement in March. They are hesitant to commit additional funds to the EFL if the financial rules limiting spending in the Premier League are deemed illegal. One source reportedly stated, “If we have to spend more to even try to keep pace with clubs like City, we might need to hold on to that money.”
The proposed ‘new deal for football’ aimed to provide EFL clubs with an extra £150m per season over six years. However, the failure to secure the deal in March followed shortly after City filed their lawsuit on February 16. At the time, up to 10 Premier League clubs opposed the new funding arrangement for the lower divisions.
GET MORE NEWS HERE
Leave a Reply