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From today's Times.
The EFL rejected a £375 million offer from an American investment firm for a 20 per cent stake in the league that would have helped to solve the clubs’ cash crisis, it can be revealed.
TPG Capital offered the cash as part of an arrangement that was similar to CVC Capital Partners’ deal with Premiership Rugby when it took a 27 per cent stake. It is understood that the EFL turned down the offer on Friday, two days before Rick Parry, its chairman, revealed details of the plan he is involved in, alongside the respective American owners of Liverpool and Manchester United, to revolutionise English football with Project Big Picture.
As part of the deal, TPG — previously known as Texas Pacific Group — would have been able to put in place a management team to handle the EFL’s commercial and broadcasting rights, believing it would have a much better ability to maximise its potential.
It is thought that the offer was not put to the 72 EFL clubs but discussed by the league’s commercial chiefs before being rejected. The EFL declined to comment.
The EFL, which is seeking a £250 million bailout because of the Covid-19 crisis, suffered another significant blow when David Baldwin, the league’s chief executive, quit after less than six months in the position. Baldwin, the 49-year-old former Burnley chief executive, announced his decision to the EFL board yesterday.
The EFL said the decision was not related to Project Big Picture, but it is understood it is partly linked to frustrations around dealing with the Covid-19 crisis as well as personal family issues. He is expected to work out a six-month notice period.
Baldwin, who had been involved in making the case to the government for the safe return of fans, as well as negotiating for a financial support package with the Premier League, saw through a change to the EFL’s rules so that League One and League Two clubs are subject to a salary cap.
In a statement he said: “Clearly, accepting this position pre-Covid-19 means the situation is now very different to the one I envisaged.
Simon Jordan on talksport alluded to this yesterday saying there are outside investors willing to pump cash into the league.
But Parry is a snake. Theres nothing stopping him from turning the EFL into a premier league style league from a marketing and advertising POV. But he's turned it down.