The Premier League agreed to a rescue package yesterday worth GBP250 million (USD330 million) to ease the financial burden on lower-division teams in English football as a result of the coronavirus pandemic.
Under the new rules, Premier League clubs will be limited to signing no more than three overseas players under the age of 21 in any single transfer window and a total of no more than six per season from January 2021.
The Premier League has been unable to secure the continuation of the free movement of players from Europe after Brexit, with a new points system being adopted for all global transfers.
Liverpool's Brazilian midfielder Roberto Firmino celebrates after scoring a goal during the English Premier League football match between Liverpool and Leicester City at Anfield in Liverpool, north west England on November 22, 2020.
The Governing Body Endorsement (GBE) proposal was submitted to the Government last month and it has now been approved by the Home Office.
The system meets the joint objectives of the Premier League and The FA allowing access to the best players and future talent for clubs, as well as safeguarding England teams, by ensuring opportunities for homegrown players.
After Brexit, clubs will not be able to sign European Union players freely. This enables the recruitment of the best players from around the world to train and play together with homegrown talent.
However, it's understood that sides in the United Kingdom have been informed that they will still be able to legally recruit Irish players in the 16-18 age bracket, although there was no specific reference to this in the missive.
The £20m monitored grant will be distributed among clubs based on their "need", with the process involving an application process with the distribution determined by a joint EFL and Premier League panel. While the limitations on signings from overseas will hopefully put an end to the loathed practise of stockpiling players by cash-rich clubs, as well as potentially improving the development of homegrown talent, the arrangements could end up strongly favouring the top Continental clubs in terms of snapping up Europe's most promising stars at a young age.
Culture Secretary Oliver Dowden said: "I warmly welcome this deal between the Premier League and the EFL, which provides up to £250 million support to help clubs through Covid. Following the January transfer window, we look forward to reviewing the agreement with The FA".
Our commitment is that no EFL club need go out of business due to Covid-19.