The Premier League decided, at a meeting in London, to introduce, on an experimental basis, a spending limit for squads that cannot exceed 85% of the club’s income.
According to this new regulation, which will be used “in a non-binding manner” starting from the next season, 2024-2025, entities will not be able to spend on their staff more than 85% of its annual income and the net balance after the sale/purchase of footballers. This new initiative will be called ‘Squad Cost Rules’ (SCR) and translates as “staff cost rules”.
“This will allow the league and clubs to review the system, including the equivalent of UEFA’s new financial regulations. The system aims to improve and maintain the financial sustainability and balanced competitiveness of the Premier League, as well as leapfrogging clubs’ aspirations, facilitating alignment with other competitions and supporting clubs’ competitiveness in UEFA competitions,” the Premier said in a statement.
Total spend, also limited
The clubs also agreed this Thursday to the introduction, also on trial, of ‘Top of Bottom Anchoring Rules’ (TBA) which indicate that clubs They will not be able to spend, in total, more than a “multiple of the revenue (from television and prizes) of the league’s lowest-earning club.” This multiple is unknown, but the English media put it at 5.
This is a measure designed to maintain the competitive balance of the Premier League and it is intended that it will have no effect unless there is a “significant imbalance” between the clubs’ income.
In practice, this means that if the team with the least revenue in the Premier takes in 100 million pounds at the end of the season, this will be multiplied by 5 (500 million) and that will be the club’s total spending limit.
105 million pounds of losses in three years
Along with these steps, it will continue the Premier’s financial ‘fair play’, allowing a loss of 105 million pounds over three years and that, so far, has not been updateddespite the fact that these numbers were determined in 2013 and inflation since then has increased by more than 30%.
This season ended, Everton suffered two penalties for financial irregularities which resulted in the loss of ten points, reduced to six, and two additional points. In addition, Nottingham Forest also lost four points due to financial irregularities and Leicester City, recently promoted to the competition, were accused of breaching financial fair play rules. At a higher level is Manchester City, accused by the Premier League of 115 irregularities committed between 2009 and 2018.
The city sued the Premier League
The English champion, who will know the result of the accusations in the summer of 2025 at the earliest, has decided to sue the Premier for its regulations regarding operations in companies belonging to the same owner, because, according to City, it limits the competitiveness of large teams by forcing them to go through an independent commission if they want to process an economic agreement with a company with which its owner already maintains a relationship.
This rule began at the end of 2021 when Newcastle United was bought by Saudi Arabia so that the ‘magpies’ did not take advantage of their links to this state to gain an economic advantage. The city, for example, has a dozen sponsorship deals with companies from the United Arab Emirates, which bought the club in 2008. These include its main shirt and stadium sponsor, Etihad Airways.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
