Premier League's £1.8bn EFL deal would scrap Carabao Cup semi-final second legs

The Premier League has put forward a £1.8bn financial package for the English Football League that would roughly double existing solidarity payments, spread across 10 seasons — on the condition that Carabao Cup semi-finals are reduced from two-legged ties to single matches.

The proposed agreement, reported by the Daily Mail, would distribute funds across all three EFL divisions, with both parties said to be around £27m apart in negotiations. Despite that gap, there is growing confidence a deal will be reached. Premier League clubs have unanimously approved the proposal; EFL clubs doing the same would remove any need for involvement by the Independent Football Regulator (IFR).

Under the current solidarity split of 80:12:8 between the Championship, League One and League Two, a revised 75:15:10 breakdown is being sought by the EFL. The Premier League has not pushed for a change, but the EFL’s preferred split would see mid-table Championship clubs receive £8.5m more per season — rising from £12.1m to £20.6m — while League One clubs would gain £1.3m extra and League Two sides an additional £700,000. A rise in the Premier League transfer levy from 4% to 6% would fund the increase.

The overall package represents around 17.5% of what top-flight clubs earn from collective broadcast rights — 6.5 percentage points above the current level, though half of what the EFL originally sought.

The deal also includes controls on how funds are spent. Clubs would be barred from using the money to increase player wages, and 15% must be directed towards infrastructure. A ‘lifeboat fund’ is also proposed, offering clubs that enter administration a £20m loan to continue paying essential creditors and keep operating.

An additional condition would advance talks with the National League over expanding the number of clubs promoted to League Two each season. The Premier League is also said to want to reduce EFL clubs’ reliance on owner funding.

EFL clubs were briefed on the proposal last week and will make a final decision once the league’s board is ready to recommend it. The deal has been under discussion for six weeks. The EFL is reported to prefer waiting for the IFR’s State of the Game report, due to be published on 12 October, before committing.