Newcastle look set to have emerged victorious in their battle against Premier League financial rules as Sky Sports report that clubs have voted for new financial rules.
FFP and PSR have been contentious regulations this season, with Toon chief Darren Eales speaking ahead of the January window saying that the rules would be restrictive on our business. But, after a meeting of Premier League clubs today, it looks like we are about to see the scrapping of PSR as we know it.
Sky Sport’s Kaveh Solhekol posted on X that clubs had voted to replace profit and sustainability rules with new squad cost ratio rules.
“[Clubs] voted today to progress with new squad cost ratio rules to replace current Profitability and Sustainability Rules,” Solhekol said. “Final vote on whether to adopt new rules will be taken at AGM in June.”
The ratio rules will see clubs restricted to spending 85% of their overall revenue on transfer fees, wages and agent fees. It comes after substantial pressure from clubs including Newcastle who fought a PR campaign against the rules with interventions from chief Darren Eales in the media.
In January 2024, the club announced an increase in revenue by 39%. A statement on the club site said: “The club increased its revenues to £250.3m from £180m the previous year, as match day, commercial and media rights revenues all increased.
“The financial performance was supported by the club’s successful season on the pitch, with the club reaching its first major cup final in 24 years and achieving a fourth-place finish in the Premier League to secure qualification for the UEFA Champions League.”
The current PSR rules are still holding fort for next season. If these new rules get the green light at the AGM, there’ll be a transition period. Points deductions remain on the table for any breaches of the rules.
BREAKING: Premier League clubs have agreed in principle to introduce new financial rules 💰
They voted today to progress with new squad cost ratio rules to replace current Profitability and Sustainability Rules.pic.twitter.com/zsaDzHopdt
— Sky Sports Premier League (@SkySportsPL) April 11, 2024
It’s a start, but not even a nibble at the advantage against those clubs who have already taken advantage of a very unfair system.
Those clubs will still be able to outspend the rest by a massive amount.
If a luxury tax was imposed on overspend in conjunction with an average spend cap based on previous window spends of premiere clubs were introduced that would enable other teams to close the gap in a gradual way and put the brakes on the top clubs from pulling further away.
Joseph(Quote)