Ipswich Town learn of £50 million rescue package for League One and Two clubs after EFL strike deal with Premier League
The extent of a rescue package that will help Ipswich Town amid the huge financial challenges of the Covid-19 pandemic has been agreed by the EFL and the Premier League.
A fund of £50 million in the form of a grant and monitored grant payments has been agreed for League One and Two clubs while the Premier League will provide a further financial commitment to assist the EFL in securing a £200m loan facility that Championship clubs will be able to utilise interest free.
Games at Portman Road have had to be held behind closed doors since the 2019/20 season was abandoned and later calculated on a points-per-game formula in March, though up to 2,000 fans are set to return for the visit of Portsmouth on December 12.
BBC Sport is reporting the £50m will be split into two parts - £30m is set to be paid to the 48 clubs as a grant based on missed gate receipts from the 2019/20 and 2020/21 seasons.
League One clubs will receive a minimum payment of £375,000 and League Tow clubs, such as Cambridge United, will receive a minimum payment of £250,000.
The remaining £15m, the BBC reports, will be distributed using a lost gate revenue share calculation.
A further £20m monitored grant will be provided and clubs can apply based on need with a joint Premier League and EFL panel determining club eligibility.
Clubs receiving a monitored grant will be subject to restrictions with respect to transfer spend and player wages.
Premier League clubs have given their final approval to the agreement at today’s shareholder meeting and this followed earlier approval of the deal by the EFL Board, acting on behalf of its membership.
EFL chair, Rick Parry, said: “Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic.
"I am 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.
“I would like to thank Richard Masters and Gary Hoffman for their efforts on behalf of the Premier League, and of course their shareholders, for making this welcome, tangible commitment to the professional game at a time when it has needed it most.”
Premier League chief executive, Richard Masters, said: “The Premier League is a huge a supporter of the football pyramid and is well aware of the important role clubs play in their communities. Our commitment is that no EFL club need go out of business due to Covid-19.
“All football clubs continue to suffer significant financial losses as a result of the pandemic, but Premier League Shareholders today unanimously agreed to provide additional funding and support for EFL clubs in real financial distress.
“We are very pleased to have reached this agreement and we stand together with the EFL in our commitment to protect all clubs in these unprecedented times.”
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