Premier League clubs have reportedly agreed to adopt a new financial model aimed at controlling costs, following recent hefty points deductions for Everton and Nottingham Forest, which led many to question the effectiveness of the league’s Profit and Sustainability Rules (PSR).
At the Premier League shareholders meeting, all 20 clubs voted on the proposed new rules, with unanimous agreement reached, according to Sky Sports.
While alternatives like a luxury tax or salary cap were considered, it seems the league is leaning towards a squad-cost ratio system, akin to UEFA’s recent regulation limiting spending to 70% of club revenue. However, the Premier League’s proposal would allow up to 85% of revenue for expenses.
Mail Sport previously reported that Premier League clubs are contemplating abolishing points deductions in favor of a luxury tax. Concerns have arisen that the current PSR could jeopardize the league’s status by restricting clubs’ ability to attract top talent with competitive salaries.
Despite the decision at the meeting, PSR is expected to remain for the 2024-25 season. Discussions have also focused on ‘anchoring,’ a form of salary cap linked to the lowest-spending club’s wage bill.
Additionally, there’s growing support to revise financial regulations so that only expenditure on players and coaching staff is considered over the reporting period. This would enable investment in areas like digital and marketing to grow the fan base.
A surprising development is speculation about a potential vote to overturn the ruling on related-party transactions, involving deals within multi-club networks or with sponsors sharing common ownership. This could impact club ownership structures and financial transparency.
As Premier League clubs navigate financial complexities, decisions made will shape English football’s future competitiveness globally.