Future of Carabao Cup in question as EFL seeks deal with Premier League

The renaissance of the Carabao Cup has proven the competition is integral to English football, says the EFL, but it would be willing to change the tournament if it meant reaching a new financial settlement with the Premier League.

Manchester United take on Newcastle at Wembley in the most eagerly anticipated League Cup final in years on Sunday, days after the British government is expected to publish its long-awaited white paper on an independent regulator for English football.

The future of the League Cup has come into question after changes to European competition meant top sides will soon play more Champions League fixtures in the autumn and winter. The EFL’s chair, Rick Parry, says ticket sales and viewing figures prove the Carabao Cup is “immensely popular” and a financial lifeline for the football pyramid. But the structure of the cup remains up for negotiation, he says, if it unblocks talks that were supposed to have been resolved a year ago.

“Last year we had a record audience for the Carabao Cup, with four million watching the final,” Parry said. “This year attendances have been up and are at pretty much at record levels. It’s a competition that’s immensely popular. That said: are we prepared to have constructive dialogue given the challenges of the calendar, yes of course. We’re prepared to consider pretty much every possibility.”

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Matters up for discussion include the possibility of abandoning two-leg semi-finals, and Champions League teams fielding under-21 sides in early rounds has also been reported, if a deal that includes new levels of financial distribution can be agreed. But Parry, who is anticipating the government white paper will propose that the regulator have the ability to enforce or arbitrate on a settlement should one not arise, said he had yet to receive a full proposal from the Premier League.

“We think there’s still an issue with getting agreement within the Premier League,” Parry said. “It’s been well reported that there has been disagreement [about redistribution] among the clubs in terms of who will pay for it and how the money will be shared. I don’t think the Premier League has a mandate to put a formal proposal to us yet.”

Parry’s solution is for the Premier League and EFL to pool their TV rights and split the revenues with 25 per cent going to the lower leagues. Revenue would then be distributed across the top two divisions according to merit, with the league winner earning twice as much as the side finishing bottom.

“We have always said we are happy to take our chances with the regulator and argue the logic of our position,” Parry said of the wait for a resolution. “[But] we’d rather they were proactive in setting an agenda rather than having [backstop powers to force a deal]. We do not want to sit back and wait. I think we’re looking at 2024, 2025 before the regulator is in place. We would far rather reach a solution within football prior to that date if we can.

“We eagerly await the publication of the white paper to see whether [the issue of backstop powers] is addressed. If it isn’t we’ll be very negative; if it is addressed positively we’ll be a lot more positive.” – Guardian