Liverpool and Manchester United are backing a plan to radically change the Premier League’s structure, according to a report on Sunday in Manchester.
The changes will see more power being given to the big clubs, reducing the 20-club league to 18 clubs and scrapping the League Cup.
The plan will see the Premier League commit to providing 25 percent of the league’s revenue to Football League (EFL) clubs.
It will also see a 250 million pounds (326.15 million dollars) package to help with the immediate impact of the COVID-19 crisis.
The report said the plans had been put together in a document called “Revitalisation”.
It was produced by Liverpool’s American owners Fenway Sports Group, with support from Manchester United’s Florida-based owners, the Glazer family.
A source with knowledge of the discussions and the document confirmed to Reuters that the report was accurate.
The Premier League, Manchester United and Liverpool did not immediately respond to a request for comment.
The proposal is for 8.5 percent of annual net league revenue to go on “good causes”, including the Football Association.
The 25 percent of remaining Premier League and Football League revenue would go to EFL clubs.
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This would replace the current system of “parachute payments” to clubs relegated from the Premier League.
The plan does not, however, call for the top six to be given a greater share of television revenue.
The plan has the public backing of EFL chairman Rick Parry, the former Liverpool chief executive, who has expressed concern about the state of EFL club’s finances.
What do we do? Leave it exactly as it is and allow the smaller clubs to wither? Or do we do something about it? And you can’t do something about it without something changing.
“And the view of our clubs is if the (big) six get some benefits but the 72 also do, we are up for it,” he said.
The proposal is sure to prompt a lively debate within the Premier League.
The change to the “one club, one vote” system has been in place since the league was formed as a breakaway from the Football League in 1992.