The Premier League, the organization that governs English professional football leagues, decided this Thursday to introduce, on a trial basis, a spending cap for teams that cannot exceed 85% of a club’s revenue.
Under this new regulation, which the Premier League says will apply “optional” from next season 2024/25, clubs cannot spend more than 85% of their annual income on maintenance and acquisitions. football players.
This new initiative is called the Team Cost Rules (SCR).
“This will allow the league and clubs to evaluate the system, including the equivalent of UEFA’s new financial rules. The aim of the system is to improve and maintain the financial sustainability and balanced competitiveness of the Premier League, as well as exceeding clubs’ expectations, promoting alignment with other competitions and maintaining clubs’ competitiveness in UEFA competitions,” the Premier League said in a statement.
The clubs have also agreed to introduce, also at a pilot stage, “Top-Down Linking Rules” (TBA), which mean that clubs will not be able to spend a total amount greater than “a multiple of the income (from television and prizes) of the club that wins the least in the championship.” What multiple we are talking about is still unknown, but the specialized English press sets the bar at five times.
The measure is aimed at maintaining the Premier League’s competitive balance and will have no impact unless there is a “significant imbalance” between clubs’ incomes.
In practice, this means that if the lowest earning Premier League team earns £100 million (€117 million) at the end of the season, that amount will be multiplied by five (£500 million or €587 million). there will be a total spending limit for clubs participating in the competition.
Along with these measures, the English league’s financial fair play will continue to apply, which allows for losses of £105 million over three years and which is currently not being updated, despite the fact that these figures were calculated in 2013 and inflation has grown since then. by more than 30%.
Everton have been hit with two sanctions this season for financial irregularities, which saw their 10-point loss reduced to six, plus a further two points.
In addition, Nottingham Forest also lost four points due to financial irregularities, while Leicester City, who recently qualified for the tournament, are accused of breaking financial fair play rules.
At a higher level is Manchester City, owned by Portugal internationals Bernard Silva, Matheus Nunez and Ruben Dias, who were accused by the Premier League of 115 offenses between 2009 and 2018.
The Manchester club, which may not know the outcome of the charges until the summer of 2025, has decided to take legal action against the English league over its rules on transactions with companies owned by the same owner, which City say limits the club’s competitiveness. large teams, forcing them to go through an independent commission if they want to formalize an economic agreement with a company with which its owner already has a relationship.
The rule came into force at the end of 2021 when Newcastle United was bought by Saudi Arabia, with the aim of preventing the Magpies from using their links with the state to gain economic advantages.
City, for example, has a dozen sponsorship deals with companies from the United Arab Emirates, which bought the club in 2008. These include his main shirt and stadium sponsor, Etihad Airways.
Author: Lusa
Source: CM Jornal
I’m Dave Martin, and I’m an experienced journalist working in the news industry. As a part of my work, I write for 24 News Reporters, covering mostly sports-related topics. With more than 5 years of experience as a journalist, I have written numerous articles on various topics to provide accurate information to readers.