PREMIER LEAGUE AGREE NEW FFP RULES

Premier League clubs agree new financial model to replace Profit and Sustainability rules

Squad-cost ratio will come into effect to mirror
Premier League clubs have reportedly agreed in principle to adopt new rules to control costs.

The current Profit and Sustainability Rules, previously known as Financial Fair Play, allow for losses of £105million over a three-year cycle and have resulted in recent points deductions for Everton and Nottingham Forest.

However, many more clubs have been forced to remain stagnant in recent transfer markets to avoid tipping over the limit and critics have claimed that they stifle ambition.

A number of alternative options, such as a luxury tax and salary cap, have been discussed by fans and pundits but the league appears ready to press ahead with a squad-cost ratio system.

This will allow clubs to spend up to 85 per cent of their revenue on transfers, wages and agent fees. A similar system is being adopted by UEFA whereby clubs in European competition can only spend 70 per cent of their income.

Thursday’s Premier League shareholders meeting saw the 20 clubs hold two votes on the new rules, with Sky Sports reporting that one reached a unanimous verdict. Now agreed in principle, the league will aim to enshrine in it their rulebook at their summer AGM.

Critics of the squad-cost ratio say it will only serve to keep the existing established order in tact, with the current biggest clubs able to bring in the most revenue. There are also questions over how clubs will be allowed to artificially increase revenue via sponsorships with businesses related to their ownership, particularly clubs with owners linked to wealthy states.

Profit and Sustainability Rules are expected to remain in place for the 2024-25 campaign, which could be used as a transition period to begin the squad-cost ratio.

The threat of points deductions is also set to be part of the new rules in some way.

Amid the Premier League’s internal discussion over its own financial guidelines, the government continues to press ahead with a new Independent Football Regulator, which could have the power to enforce its own set of rules on ensuring football clubs are run sustainably.

Elsewhere at the league’s meeting on Thursday, the use of semi-automated offsides was agreed from next season.

I think its all tosh there to protect the legacy "big" clubs, they all get around it anyway. If an owner wants to splash more than the club is worth, why stop them? Lets not kid anyone professional football is only about money.

Basically, the big clubs have got their way again and have done so by bullying the smaller clubs.

I would have left them F off to their super league then banned them from returning when it flopped.

Let them spend what they want... But 30% of all transfer fees is distributed between all the EFL clubs!!!

To follow up on my post above, over the last six windows this would given every club in the championship, league one and two 32 million each!!!!

I hate elitism in football. It’s a fantasy now that there will ever be a return to the 60s . Between 1958 and 71. ELEVEN different teams were league champions. Brilliant and exciting times to be a supporter with all that competition. Nobody buying success with sugar daddy money. More focus on bringing through your own youth. Would love to see that again mixed with a little bit of the draft system of the NFL, more local players , local accents in dressing rooms, bigger bonds between club and community, yet still accommodate overseas players, just not so many, more smaller teams rising through the leagues, just closing the gap between big and little, and ridding those big six clubs of exactly that. More even keel. A pipe dream. Money talks, football is now a business, and behind it all corruption!