The long-awaited final report from the Government review into the game, which was published on Wednesday night, has made a number of recommendations that aim to improve “the governance, ownership and financial sustainability of clubs in English football, building on the strengths of the football pyramid”.
One of the recommendations is for a new “solidarity transfer levy” to be paid by Premier League clubs when purchasing players from overseas or from other Premier League clubs.
It is explained that this would work in a similar way to stamp duty, with the money from it distributed among the pyramid and into grassroots football. The report explains that if a 10 per cent levy had been applied in the last five seasons then an estimated £160million per year could have been raised for redistribution.
The review states: “In addition to consideration of increasing distributions and reforming parachute payments, the review has also considered other possible approaches to provide greater support throughout the football pyramid.
“Of these, the review considered that the most progressive intervention is a new solidarity transfer levy paid by Premier League clubs on buying players from overseas or from other Premier League clubs.
“This would work in a similar way to stamp duty and distribute revenues across the pyramid and into grassroots.”
As well as a new levy for transfers, the review also recommends a new clause to be introduced to player contracts adjusting salaries by a fixed percentage on both promotion and relegation.
“The review concluded that a pragmatic solution would be for a new clause to be introduced to player contracts adjusting salaries by a fixed percentage on both promotion (upwards) and relegation (downwards),” it states.
“In this way, relegation risks can be mitigated but players can also be rewarded for success. Providing for a fixed percentage increase or decrease also avoids the amount of the uplift or decrease becoming part of a competitive recruitment scenario.”