PREMIER LEAGUE PLANS FRESH FINANCIAL RULES

The Premier League clubs have agreed to introduce a new competition-wide financial system.

The reported six-year £900m deal would replace the Premier League’s current Profit and Sustainability Rules (PSR), which prohibit dreams from exceeding a permitted loss limit of £105m over a three-year period. This would be subject to approval from at least a two-third majority of Premier League’s clubs.

However, in the meeting on Monday 11^th March, English football’s top flight failed to reach an agreement with the English Football League (EFL) for a new funding model.

Premier League clubs had been warned that if they fail to reach a funding deal with the EFL it will be imposed on them by the new Football Regulator.

The warning came from Culture Secretary Lucy Frazer, who was speaking at the FT Business of Football Conference.

The two parties previously held talks on 29th February over the agreement dubbed as the ‘New Deal for Football’.

A Premier League statement released after Monday’s meeting said that the top-flight clubs have agreed ‘to prioritise the swift development and implementation of a new League-wide financial system.’

It continued, ‘The League and clubs also reaffirmed their ongoing and longstanding commitment to the wider game which includes £1.6bn distributed to all levels of football across the current three-year cycle.

‘The Premier League’s significant funding contributions cover all EFL clubs and National League clubs, as well as women and girls’ football, and the grassroots of the game.’

Earlier this season, Premier League outfit Everton were handed a 10-point penalty for PSR breaches after reporting losses of £124.5m in 2021/22, however this was recently reduced to six points.

A number of clubs in the English top tier have recently published financial losses, such as Chelsea, Aston Villa and Newcastle United.

The new system would reportedly be similar to UEFA’s financial sustainability regulations, which allow teams to make losses of up to €60m (£51.26m) annually, with this figure rising to €70m (£59.81m) if the club is considered to be ‘in good financial health’.