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The Premier League and National League are reportedly in talks about setting up a new cup competition.

It was announced last week that FA Cup replays will be scrapped from the first round onwards starting next season, amid concerns over fixture congestion.

The decision was condemned by a number of EFL clubs and fans, but Mail Sport revealed that it was surprisingly backed by the National League.

It is understood that the proposed competition would have four groups of eight teams, four from each division, and the National League teams would play the Premier League Under 21 outfits at home.

The decision to scrap FA Cup replays from the first round onwards was announced last week

The decision to scrap FA Cup replays from the first round onwards was announced last week

It has now been reported that the National League are in talks with the Premier League over setting up a new cup competition

It has now been reported that the National League are in talks with the Premier League over setting up a new cup competition

The National League clubs would not play each other, and would receive all of the gate receipts and half of the prize money, with the other half being put aside to be split between the 56 teams not participating in the competition from the National League, National League North and National League South.

The competition is set to be heavily subsidised by the Premier League if it is given the green light. 

The groups would be decided on a regional basis, although this is likely to not be the case once the knockout stages arrive. The final format of the competition is still to be agreed.

The Athletic’s report states that the idea for the competition is based on the existing EFL Trophy, which has been in place since being founded in 1981.

This consists of 64 clubs, 48 from the League One and League Two along with 16 Under 21 teams from the Premier League and Championship with ‘category one’ academies.

The final is held every year at Wembley, and this could also be the case with the new proposed cup competition.

There had been plans for the existing EFL Trophy to potentially be expanded, with all 20 Premier League clubs being invited and more group games put in place, but this now appears unlikely.

But the new competition may only anger fans more, as it has been pencilled in to start shortly before Christmas in a period that will be freed up by the axing of FA Cup replays.

The move to get rid of FA Cup replays has proved extremely controversial, with EFL clubs insisting they were not consulted by the FA or their own league prior to the announcement being made.

The proposed new cup competition would be based on the existing EFL Trophy that was won by Peterborough earlier this month

The proposed new cup competition would be based on the existing EFL Trophy that was won by Peterborough earlier this month

Premier League chief executive Richard Masters (pictured) spoke on Friday about his concerns with the football calendar, but a new cup competition could now be introduced

Premier League chief executive Richard Masters (pictured) spoke on Friday about his concerns with the football calendar, but a new cup competition could now be introduced

Even with their removal, Premier League clubs are facing more fixture chaos next season after the proposed schedule was released earlier this week.

As things stand, there are currently multiple clashes between European and domestic games following the expansion of the Champions League, while the mid-season break has been removed.

Premier League chief executive Richard Masters raised his concerns about the football calendar at the 48th European Leagues General Assembly press conference in London on Friday, claiming the schedule is currently at a ‘tipping point’ and that ‘something has to give’.

However, if the new cup competition between National League and Premier League Under 21 teams goes ahead, the calendar is only set to get even busier. 

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