Crucial cash injection for the Cobblers as EFL and Premier League agree rescue package

A fund of £50m in the form of a grant and monitored grant payments has been agreed for clubs in league one and two, 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.

Premier League clubs gave their final approval to the agreement at a shareholder meeting on Thursday, 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.”

The relief package will provide a combined fund of £50m for league one and league two clubs, with £30m to be paid to all 48 clubs as a grant, and a further £20million available on application as a ‘monitored grant’.

The Covid-19 pandemic has placed a huge strain on the Cobblers, and all other clubs up and down the country.

All EFL and Premier League clubs have had to play matches behind closed doors since the middle of March, with their revenues severely hit.

This Saturday sees the first game where some Cobblers fans will be allowed to attend, with 1,000 season-ticket holders being allowed to watch Town's league one date with Doncaster Rovers.

The details of the agreed bailout are as follows:

A £30million grant to be paid immediately from the Premier League to EFL Clubs for distribution based on lost gate receipts in respect of the 2019/20 and 2020/21 Season.

Each club, including the Cobblers, will receive a minimum payment of £375,000 in league one and £250,000 in League Two.

The remaining £15m will be distributed using a lost gate revenue share calculation, which will be approved by both the EFL and the Premier League.

In addition, a further £20m ‘monitored grant’ is to be provided with clubs able to apply for it based on ‘need’, with a joint EFL and Premier League panel to determine Club eligibility.

Clubs subsequently in receipt of a ‘monitored grant’ will be subject to certain restrictions, in respect to transfer spend and player wages.

Clubs who keep to the restrictions will not have to repay any of the funding required, whereas for clubs in breach, the ‘monitored grant’ becomes repayable by the club.

Any club in receipt of a grant or monitored grant payment will be required to continue to maintain compliance with the EFL’s financial regulations.