The Premier League have confirmed that they have agreed a rescue package with the English Football League (EFL) to help offset the financial challenges faced by the clubs in the Championship, League One and League Two amid the coronavirus pandemic.
Earlier this season, the EFL rejected the initial bailout package from the Premier League as they were not satisfied with the proposal of only helping out the League One and League Two sides.
In the second meeting last month, the EFL revealed that they had reached a provisional agreement with the Premier League after the latter extended their help to the Championship sides as well.
A £50m rescue package has now been agreed in the form of grants for the League One and League Two teams while a £200m loan facility has been setup for the Championship sides which is interest free.
The COVID-19 pandemic has put a number of clubs under financial turmoil with the lack of gate receipts. As many as 10 teams in League One and League Two were struggling to meet the pay-roll last month and the bailout package should come as a welcome boost.
The clubs in the third and fourth tier will be given a share of £15m. League One and League Two clubs will receive around £375,000 and £250,000 respectively as soon as possible.
A further £15m will be distributed between the clubs unevenly using a lost gate revenue share calculation based on the capacity of the stadiums of the respective teams.
The remaining £20m is regarded as a monitored grant for the bottom two divisions of the Football League. It can be applied for by the clubs based on any extra need.
