Leeds United and Premier League clubs reject Manchester United and Liverpool plan, pledge £50m for League One and League Two

Project Big Picture, an idea that came from the ownership of Manchester United and Liverpool and boasted the support of EFL chairman Rick Parry, proposed a bail out for EFL clubs, a smaller top flight and special voting rights for top teams.

Today the proposals have been rejected. A Premier League statement confirmed: "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."

But the clubs do all agree that the financial future of English football must be reviewed. The impact of the COVID-19 pandemic, which has removed fans from stadiums, is threatening the very existence of EFL and non league clubs, while costing Premier League clubs around £100m a month.

The 20 Premier League clubs will now put together a plan, in consultation with supporters, the UK government and the EFL.

A statement said: "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."

At a meeting held earlier today, the clubs pledged to provide financial support to struggling EFL clubs, in the form of grants and interest-free loans, to address concerns raised at government level over clubs' viability during the pandemic.

A spokesperson said: "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 £50 million on top of the £27.2m solidarity payments already advanced to League One and League Two this year, making a total of £77.2m. Discussions will also continue with the EFL regarding Championship clubs’ financial needs. This addresses Government concerns about lower league clubs’ financial fragility."

The £50m package will consist of a £20m grant, available to League One and League Two clubs in the short term, with the remaining £30m in reserve to ensure lower league clubs do not go out of business.