New Premier League spending rules are unlikely to be adopted before next season after the latest shareholders’ meeting ended without progress. League executives have been trying to introduce new ...
New Premier League spending rules are unlikely to be adopted before next season after the latest shareholders’ meeting ended without progress.
League executives have been trying to introduce new measures of financial governance over the past 18 months, and they were confident of gaining the clubs’ backing for the new proposals at Tuesday’s meeting in central London.
However, The Guardian report no significant progress was made at the meeting and chances of adopting the new spending rules before next season is slim.
This means the era of profitability and sustainability rules (PSR) in the English top-flight will likely continue.
One proposal discussed was to introduce squad cost ratio rules (SCR) that would basically limit club’s spending on wages, transfers and agent fees to 85 per cent of revenue.
Nine Premier League clubs are already committed to such a system because of European qualification and reportedly value the flexibility that PSR provides them.
Another proposal, known as anchoring, would cap the spending for all clubs to about five times the bottom team’s income from the league.
Sixteen clubs voted in favour of anchoring last year, while Manchester City, Manchester United and Aston Villa voted against the proposal, with Chelsea abstaining.
The case for the rules was made again, and clubs in favour argued anchoring could be key to maintaining the top-flight’s competitive balance.
But there are said to be concerns that if the principle is established, the EFL could follow, causing significant implications for relegated clubs.
Category: General Sports
