By Kieran Maguire

30th Jul, 2022 | 8:15am

Kieran Maguire: Game-changing finance reveal could be 'catastrophic' for Sunderland

Proposed changes to the loan system in the EFL could violate the competition’s sporting integrity and be “catastrophic” for the likes of Sunderland.

That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the so-called ‘new deal’ for English football.

Per The Times on Tuesday (26 July), the Premier League and EFL are nearing an agreement on a new financial distribution model.

The deal would see parachute payments cut in exchange for a merit-based system, while new spending limits would also be brought into place.

It is understood that the Premier League wants EFL clubs to house more loan talent in return, although it is unclear how exactly this would be enforced.

But Maguire forecasts that this system would be bad news for the pyramid.

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“These proposals are not in the wider interest of EFL clubs,” he told Football Insider’s Adam Williams.

“It doesn’t help preserve their identity or strategy. If the deal is that clubs have got to take on players who are going to play a certain number of matches per season, I think this could be catastrophic for the integrity of the EFL.

“However, the devil will be in the detail. We need to see the official proposals before we can say anything with absolute certainty.”

Sunderland begin their 2022-23 campaign against Coventry City on Sunday (31 July).

It is their first season in the Championship in four years.

In other news, ex-Fifa official claims Sunderland handed referee boost as “controversial” news confirmed.