‘Project Big Picture’ condemned by government as EFL chief Rick Parry launches defence of secret talks

Liverpool and Manchester United are leading talks with the Football League to regenerate the English football pyramid in a move that has drawn the fury of the DCMS

EFL chairman Rick Parry has defended ‘Project Big Picture' (PA)

The government has criticised the English Football League and the Premier League’s elite clubs following the emergence of ‘Project Big Picture’, despite chief executive Rick Parry calling for “a complete rethink” over the make-up of English football.

The Telegraph revealed advanced talks between Liverpool and Manchester United and the EFL regarding a dramatic change to the format of professional football in England, which has been dubbed ‘Project Big Picture’ in an attempt to pull the Football League closer to the top flight financially.

The plans, which includes cutting the Premier League to 18 teams and giving the ‘big six’ - Liverpool and United along with Chelsea, Arsenal, Manchester City and Tottenham Hotspur - significantly more power compared to the rest of the league, have been strongly condemned by the Department of Digital, Culture, Media and Sport and have triggered a fierce backlash just a day after plans were revealed for the Premier League to begin moving towards a pay-per-view broadcast model.

A DCMS statement read: “We are surprised and disappointed that at a time of crisis when we have urged the top tiers of professional football to come together and finalise a deal to help lower league clubs there appear to be backroom deals being cooked up that would create a closed shop at the very top of the game.

“Sustainability, integrity and fair competition are absolutely paramount and anything that may undermine them is deeply troubling. Fans must be front of all our minds, and this shows why our  fan-led review of football governance will be so critical.”

A Premier League statement earlier in the day played down the reformation plans and criticised EFL chief Parry for giving his vocal support on the record, but Parry issued a lengthy statement to defend his position and call for a revamp on the football pyramid.

“The need for a complete rethinking regarding the funding of English professional football predates the Covid-19 crisis,” Parry said.

“Discussion and planning around ‘Project Big Picture’ has been ongoing for quite some time, unrelated to the current pandemic but now has an urgency that simply cannot be denied.

“The gap between the Premier League and the English Football League has become a chasm which has become unbridgeable for Clubs transitioning between the EFL and Premier League. In 2018/19, Championship clubs received £146m in EFL distributions and Premier League solidarity payments. This compares with £1.58bn received by the bottom 14 Premier League clubs - 11 times as much.

“Project Big Picture takes a huge step by sharing 25 per cent of Premier League media net revenues with the EFL in order to correct this imbalance going forward. Coupled with the introduction of strict cost controls, Clubs at every level of the EFL will become properly sustainable even in the face of a major crisis – and more importantly – beyond.

“Just as importantly, the financial gap between the bottom of the Premier League and the top of the Championship will be substantially reduced. This will create a much softer landing for relegated clubs. The elimination of Parachute Payments will create fairer competition and discourage irrational behaviour.”

Parry pointed out to the fact that Championship clubs spent 107 per cent of their income on wages in 2019/20, which contributed to operating losses of £382m across the league, and added that Leagues One and Two are “financially stretched despite enormous revenues that English football generates”. He also claimed that the league’s parachute payment scheme skews a fair and balanced fight for promotion, with the new plans proposed to remove that aspect of relegation.

The EFL is currently waiting on a £250m rescue package that follows the loss of match-day revenue following the coronavirus pandemic, a figure which has been included under ‘Project Big Picture’ as an advance payment rather than a loan, which Parry says “could never have been repaid under the existing terms and revenue of the English pyramid”.

He added: “Now is the time to address both the long-term health of the game and the most challenging short-term crisis it has ever faced.

“Project Big Picture provides a new beginning which will revitalise the football pyramid at all levels. This new beginning will reinvigorate clubs in the lower leagues and the communities in which they are based.

“The whole of English football has been negatively impacted by this pandemic and the English football pyramid as a whole is only as healthy as those at its base. Through this proposed restructuring we aim to strengthen those who need it most at a time when they need it most. This is about building on what is good and making the most of what works well in order to benefit the game as a whole, while simultaneously tackling those issues which trouble all of us. This is a blueprint for the future of English football and for everyone who cherishes it.”

The plans also include a financial bailout for the Football Association to aid with its financial crisis, having made 124 redundancies this year as a result of the Covid-19 pandemic, but the news was met with concern by the Premier League, who seemed to lack any knowledge of the talks between Liverpool and United.

It stated that “a number of the individual proposals in the plan ... could have a damaging impact on the whole game”, and targeted Parry specifically for going outside of the “proper channels” in discussing what would be seismic changes to the landscape of the English game.

A Premier League statement read: "Football has many stakeholders, therefore this work should be carried out through the proper channels enabling all clubs and stakeholders the opportunity to contribute.

"In the Premier League’s view, a number of the individual proposals in the plan published today could have a damaging impact on the whole game and we are disappointed to see that Rick Parry, Chair of the EFL, has given his on-the-record support.

“The Premier League has been working in good faith with its clubs and the EFL to seek a resolution to the requirement for Covid-19 rescue funding. This work will continue.”