Premier League Clubs Agree Spending Controls

The Premier League has announced that clubs will be dealt a points deduction if they break new spending regulations, similar to the Financial Fair Play controls proposed by UEFA.

As part of the ‘break even’ model, every Premier League club will not be allowed to make a loss of more than £105m over the next three seasons. Clubs must also limit their spending on player wage bills from the beginning of next seasons, however costs on stadia and academies will be exempt from the model.

The new spending controls, which are aimed to ensure the sustainability of clubs, are less stringent than the financial regulations recommended UEFA, which states that clubs may only make a total loss of up to £38m.

Premier League boss Richard Scudamore commented: ‘If people break the £105m we will look for the top-end ultimate sanction range – a points deduction. As with all things in our rulebook, you will be subject to a disciplinary commission. Normally we stay silent on sanctions as the commission has a free range but clearly if there is a material breach of that rule we will be asking the commission to consider top-end sanctions.’

According to the most recent financial reports of Manchester City, Chelsea and Liverpool, all three clubs made losses of more than £105m over the last three years. 13 Premier League clubs voted in favour of the new spending controls, while six voted against and Reading abstained.

Scudamore added: ‘A new owner can still invest a decent amount of money to improve their club but they are not going to be throwing hundreds and hundreds of millions [of pounds] in a very short period of time. While it has worked for a couple of clubs in the last 10 years, if that’s going to be done in the future it’s going to have to be over a slightly longer term without the huge losses being made. I think at £105m you can still build a very decent club with substantial owner funding but you have to do it over time, not in a season.’

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