League clubs being bailed out WON'T be able to sign players next month

REVEALED: Lower-league clubs WON’T be allowed to sign any players next month apart from on free transfers under Premier League’s £250m bailout terms – while spending on new signings is capped at just £20,000 until 2022!

  • The Premier League and EFL have been discussing a bailout deal for months 
  • The Premier League and EFL finally agreed on a £250m bailout on Thursday
  • But, clubs in League One and Two will be limited to free transfers next month

League One and Two clubs applying for additional funding from the Premier League will be limited to free transfers during next month’s window, under the terms of the £250million bailout finalised on Thursday.

The lower-league clubs will also be restricted to paying fees of just £20,000 and £10,000 respectively for the whole of the 2021-22 season.

As revealed by MailOnline, a support package including a commitment to help secure a £200m loan for the Championship — and up to £50m in grants for League One and Two — has been agreed between the Premier League and EFL. 

The Premier League and EFL have been in discussions over a bailout deal for months

But lower division clubs seeking the full amount will have to sign up to onerous conditions that will seriously affect their spending plans for the next 18 months.

The Premier League have committed to giving the bottom two divisions £15m up front, with clubs in League One and Two receiving minimum payments of £375,000 and £250,000 respectively. Another £15m will be distributed using a formula based on lost gate receipts up to December 31 this year.

A further £20m will be made available for clubs in the greatest financial need via a so-called monitored grant, which will be controlled by a joint Premier League and EFL panel and be subject to strict conditions.

Sportsmail has learned that any club in receipt of an additional grant will be unable to pay a transfer fee for one window and will face a cap on fees of £20,000 in League One and £10,000 in League Two until the end of next season. Moreover, all clubs with at least 22 first-team players will only be able to make free transfers if an existing player leaves and if the new player’s wages do not exceed 75 per cent of those of the player he is replacing. 

Premier League and EFL finally agreed on a £250m bailout on Thursday but there is a catch 

Lower league clubs receiving help, like Gillingham (pictured here warming up for a League One match earlier this year), will not be able to spend money on signings next month

Any club that fails to comply will have to repay the grant to the EFL, who will pay the money back to the Premier League.

The top flight’s direct funding of the Championship is restricted to £15m, which the EFL will use to secure a £200m loan it will then distribute to the 24 clubs interest free. Those loans will be capped at £8.33m per club and must be repaid by June 2024.

The Premier League had initially refused to provide any funding for Championship clubs they view as rivals, particularly as many have wealthy owners. This led to the EFL rejecting their initial offer of £50m for the lower leagues in October on principle.

Increased pressure from the Government has led the Premier League to make an improved offer and end a stand-off that has been ongoing since May.

EFL chairman Rick Parry welcomed the agreement yesterday, although he is likely to face dissent from some clubs unhappy with the distribution formula when three divisional meetings are held next week. ‘Our over-arching aim throughout this process has been to ensure that all EFL clubs survive the financial impact of the pandemic,’ said Parry.

‘I am pleased that we have now reached a resolution on behalf of our clubs and this will provide much needed support and clarity.’

They will also have their spending on signings capped at a maximum of £20,000 until 2022 

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