Premier League clubs reject Project Big Picture and offer this financial support to Sunderland and their League One rivals

The plan, drawn up by Liverpool and Manchester United’s ownership and backed publicly by EFL Chairman Rick Parry, would have advanced £250 million to the EFL.

The proposals also included a radical overhaul of the financial picture in the English game, abolishing parachute payments and increasing the EFL’s share of top-tier broadast money to 25%.

However, the plans drew significant controversy as they also strengthened the grip of the so-called ‘big six’ by increasing ther voting rights on key issues.

Many EFL clubs supported the proposals, but they were firmly rejected today at a Premier League meeting.

Phil Smith’s Sunderland AFC column: Why the Black Cats cannot support these proposals in this format

The Premier have issued a statement saying they will make short-term financial support available to Leagues One and Two, while committing to a review of the game’s structure.

"All 20 Premier League clubs today unanimously agreed that "Project Big Picture" will not be endorsed or pursued by the Premier League, or The FA,” the statement reads.

“Further, Premier League Shareholders agreed to work together as a 20-club collective on a strategic plan for the future structures and financing of English football, consulting with all stakeholders to ensure a vibrant, competitive and sustainable football pyramid.

"Clubs will work collaboratively, in an open and transparent process, focusing on competition structure, calendar, governance and financial sustainability.

“This project has the full support of The FA and will include engagement with all relevant stakeholders including fans, Government and, of course, the EFL.

Special Feature: The inside story of Phil Parkinson’s first year as Sunderland manager

“Also at today’s meeting it was agreed to make available a rescue package which aims to ensure that League One and League Two clubs will not go out of business as a result of the financial impact of COVID-19 and be able to complete the 2020/21 season.

“League One and League Two clubs rely more heavily on matchday revenue and have fewer resources at their disposal than Championship or Premier League clubs and are therefore more at risk, especially at a time when fans are excluded from attending matches.

"This offer will consist of grants and interest-free loans totalling a further £50million on top of the £27.2million solidarity payments already advanced to League One and League Two this year, making a total of £77.2million.”

Sunderland CEO Jim Rodwell had offered his ‘cautious support’ for the Project Big Picture proposals earlier on Wednesday, in line with many EFL clubs.

"It could potentially lead to sustainability, which is a model that we aim for,” he said.

“I think it’s well put-together proposal. There are flaws in there, there are things that we wouldn’t be happy with [promotion/relegation changes].

“It’s a way of redistributing the wealth. At the moment the business model in the EFL is fundamentally broken at most clubs. Most are spending more than they earn and that’s not sustainable.

"If something good is to come out of this awful pandemic this (Project Big Picture) could be it,” he added.

"The plans don’t hurt anyone in a meaningful way.

“At the moment, I don’t see a Plan B. Liverpool, Man United & Rick Parry should be applauded for trying to do something for the game. They’ve done something and there is something to discuss. On Saturday, there was nothing.

"It’s not just a handout, it’s a way of aiding sustainability.”

A message from the Football Clubs Editor

Hi, our aim is to provide you with the best, most up-to-date and most informative coverage of YOUR club every single day, home and away, 365 days a year.

This depth of SAFC coverage costs, so to help us maintain the high-quality reporting that you are used to from the football team at the Sunderland Echo, please consider taking out a subscription to our new sports-only package.

You'll find all the details at sunderlandecho.com/subscriptions/sports.

Your support is much appreciated.

Richard Mennear, Football Clubs Editor