Premier League agrees £200m loan to Championship clubs, and £50m gift to League One and Two

December 4 – After months of negotiations, the Premier League and English Football League, which covers the three division immediately below the top flight, have agreed a £250 million rescue package to help ease the financial burden on lower-league clubs caused by the coronavirus pandemic.

The deal will see the Championship receive an interest-free £200 million loan while third-tier League One and fourth tier League Two clubs have been awarded a £50 million grant. But extra finance for non-league teams is conspicuous by its absence.

Club finances have been hit hard since the pandemic forced clubs to play behind closed doors, with many at risk of going out of business.

“Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic,” said EFL chair Rick Parry.

“I’m pleased that we have now reached a resolution on behalf of our clubs and as we have maintained throughout this will provide much needed support and clarity following months of uncertainty.”

Fans have been allowed to return to stadiums this week in limited numbers for the first time since March, with the government allowing up to 4,000 spectators at outdoor elite sports events in the lowest-risk areas of England.

The rescue deal came two days after  a parliamentary committee heard that 10 EFL clubs were struggling to pay wages.

Premier League chief executive Richard Masters said the agreement underlined the league’s commitment “to protect all clubs in these unprecedented times”.

“Our commitment is that no EFL club needs to go out of business due to Covid-19,” he said

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