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England's football regulator is preparing contingency rules that would impose stricter financial requirements on clubs if negotiations between the Premier League and the EFL collapse.

The consultation addresses concerns that prolonged deadlock over a major redistribution agreement could leave smaller clubs in financial distress. Officials are developing backstop provisions that would tighten spending controls and increase compliance costs for teams across the professional pyramid should voluntary agreements fail to materialize.

The proposed measures underscore growing tensions over how revenue is shared between top-flight clubs and those competing in lower divisions. Premier League teams have resisted calls for substantial financial transfers to the EFL, citing their own cost pressures and investments in youth development.

The regulator's dual approach—pursuing negotiated settlements while preparing regulatory safeguards—reflects frustration with the pace of talks. Industry observers warn that delays in reaching consensus could damage the broader sport's financial stability, particularly affecting smaller clubs with limited resources.

The consultation period will allow stakeholders to provide feedback before the regulator finalizes enforcement mechanisms.

Reporting based on Sky News.


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