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| Premier League clubs have agreed to a new spending rules but, does this new rule favor big spenders like Manchester City? (Photo credit: Premierleague.com) |
The present Profitability and Sustainability Guidelines (PSR) will be replaced with squad cost ratio guidelines, which all English Premier League clubs voted to approve on Thursday, according to a source. The clubs have agreed in principle to implement the new financial regulations for the upcoming season.
If the revised regulations are approved at the June Annual General Meeting, clubs will probably be restricted to using no more than 85% of their earnings for trades, salaries, and agent fees.
PSR and points deductions, which will both be a part of the new regulations should they be adopted, will both continue to be in effect for the upcoming season, with a transition period in 2024–2025.
After being docked 10 points in November, which was later reduced to six on appeal, Everton was then docked an additional point for violating PSR, bringing their total points loss to eight. Meanwhile, Nottingham Forest lost four points.
Just above the relegation zone, Everton and Forest are ranked 16th and 17th in the table, respectively. Even though the season concludes on May 19, the Premier League has set a deadline of May 25 for the resolution of all appeals.
The Premier League made the decision to prioritize the creation and execution of a new League-wide finance system at a shareholders' meeting last month, and this agreement in principle is the result.
As per Premier League regulations, teams may violate PSR if their losses exceed £105 million ($131.90 million) in three seasons or £35 million per year.
Manchester City, the treble winners, was referred to an independent panel last year over more than 100 suspected finance rule violations; nevertheless, that case remains unsettled. The city has refuted any misconduct.
The leading team in the championship, Leicester City, who finished last season in the Premier League, may also lose points as a result of the Premier League filing a case against them at an independent commission last month for alleged violations of the league's spending regulations.
Leicester retaliated by filing two lawsuits against the English Football League (EFL) and the Premier League.