EFL chief Rick Parry reveals verdict on independent regulator that could help Sunderland, Leeds United & co

Rick Parry is hopeful that the tabling of a bill to introduce an independent regulator in English football will speed up the still unresolved talks between the Premier League and the EFL over a new financial settlement.

The introduction of the regulator took a major step forward on Tuesday by being introduced to Parliament, raising hope that it could yet be passed before the end of 2024. Crucially, the regulator is expected to be given powers to intervene and settle should the Premier League and EFL be unable to reach an agreement.

The Premier League have been in talks for some time over increasing the money they distribute down the pyramid, with clubs unable to reach agreement at their last meeting. They instead said that they would focus on overhauling their current financial fair play rules, before revisiting the potential deal with the EFL.

There is disagreement not just over the amount of money sent to the EFL, but also over the future of parachute payments. The Premier League want to keep them in place to ensure promoted clubs can be competitive, but the EFL believes they are a key factor in the financial issues that have dogged the Championship over the last decade. The EFL, led by Parry, want to distribute the funds more evenly through the Championship and base that on performance.

The introduction of a regulator offers a hope of breaking the impasse, and Parry says he is hopeful that it could bring the Premier League back to the table even sooner.

"We are hopeful because this is another area of uncertainty that's been removed," Parry told The Echo on Tuesday.

"Up until now there has been an element of will they do the regulator or won't they? There's probably been an element at Premier League level of, 'let's wait and see'. Well, now we know it's coming an the independent regulator is going to have powers.

"We think the regulator will come in pretty quickly because the government wants this finalised during this parliament, and it's clear we're facing an election towards the end of this year. Provided all the MPs are suitably supportive and this had cross-party support up until now, there's every reason to believe that this could become law by the end of this year. That really ought to focus minds.

"The government preference remains for football to find a solution and we're definitely up for that, but it's worth clarifying that we haven't at this stage had any offer from the Premier League - they haven't been able to get that over the line. We hope this might the accelerate the process but if it doesn't, then the regulator is going to have powers to step in and bring a deal about."

Parry believes the regulator's increased power will go a long way to addressing many of the ownership issues that have blighted the EFL in recent times, and believes that the prospect of a better model for redistributing the PL riches will stop many of those issues at source.

He also believes it makes fan ownership of clubs a more viable model in the long run, given that it will reduce the amount of funds owners need to invest to keep clubs competitive.

"I think it well help in two respects," Parry said.

"The regulator is clearly going to have an input into the Owners' and Directors' Test, we think our current ones are pretty robust and have improved over the years, but the regulator will have greater statutory powers - criminal prosecutions for people who make false declarations etc. The tests will be sharper but the more important thing is a fairer redistribution of revenues - that is absolutely key. The government tends to talk about Bury and Macclesfield and we talk just as much about Derby, Reading, Bolton, Wigan... the biggest challenges and inequities come in the Championship and they flow from clubs trying to compete with those who are getting parachute payments.

"It's no surprise that in each of the last six years, two of three promoted have been parachute clubs," he added.

"that's where the major tension arises and if you look at those clubs it's not that those owners came in with bad intentions, a lot of money went in to chase the dream. It gets to the point where either the owners can't continue funding or don't want to, and it leaves the clubs high and dry. The big change is the regulator will require some guarantees, some bonds or assurance, that funding will be in place going forward. You won't just be able to turn the tap off overnight. The other thing the regulator should be able to do is do not just one-off tests, but do it periodically to make sure people are still fit and proper. And if they don't, there will be the ability to tell them to divest and to put in trustees to run the club in the meantime.

"The big thing for fans I think is not just better consultation on issues on badges, colours, important though those things are - but every fan wants to know their club is financially sustainable and will exist in the long term. I think that's where the big benefit is going to come."