Premier League clubs have been warned they will be fined by the new football regulator if they fail to reach a funding deal with the English Football League.
The warning came from Culture Secretary Lucy Fraser, who spoke at the FT Business of Football Conference in central London.
Top clubs will gather at a nearby hotel on Thursday to try to hammer out a “New Deal” funding package.
Premier League CEO Richard Masters has canceled his appearance at an FT event to prioritize a conference.
Mr Fraser reiterated multiple times that the new regulator, which he claimed would be appointed “this Parliament”, would be primarily tasked with ensuring the financial stability of the game as a whole rather than getting into conflict.
But she outlined what would happen if no deal was reached.
“We don't want this to become an issue for regulators,” Fraser said. “It is clear that football should solve football problems.
“It is in the interests of the Premier League and the EFL that an agreement is reached, but it is clear that the regulators will reach an agreement if an agreement is not reached.”
An agreement on how to finance the New Deal has proved elusive over the past few months.
Some clubs feel that the “bigger” members of the top flight should pay a higher percentage.
The total amount is partly related to future TV revenues, but is expected to be around £900m over six years.
There were also disagreements over the financial regulations to be introduced in the Championship.
Regulators have “limited powers”
Mr Fraser said the regulator's powers were “limited” and did not include taking a view on whether nation-states were the appropriate bodies to own Premier League clubs.
“All the regulators are doing is looking at financial stability,” he said. “That's appropriate. Foreign investment is part of the economy and makes the game more competitive.
“The Premier League is a huge cultural export and we don't want to do anything to undermine that. “Whether foreign nations should own clubs is not part of this bill. We will run clubs. We want people to run the club well.”
