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Thursday, July 25, 2024

This summer, the Premier League will update its sustainability and profitability rules

<p>As early as this summer, a new financial regulatory framework is anticipated to replace the much-discussed Premier League profitability and sustainability standards (PSR), as disclosed on Monday.</p>
<p><img decoding=”async” class=”alignnone wp-image-501024″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-this-summer-the-premier-league-will-update-its-sustainability-and-profitability-ru.jpg” alt=”theindiaprint.com this summer the premier league will update its sustainability and profitability ru” width=”982″ height=”736″ title=”This summer, the Premier League will update its sustainability and profitability rules 3″></p>
<p>Teams in the Premier League decided to replace profit and sustainability standards with a UEFA-style spending restriction system. The new regulations will allow clubs to spend some of their earnings, such as salaries and transfer fees, to pay for expenditures.</p>
<p>Clubs participating in European tournaments will ultimately be limited by these regulations to spending no more than 70% of their overall income on player wages, transfer fees, and other costs.</p>
<p>The Premier League has been considering implementing a system that permits teams to allocate up to 85% of their income toward squad spending, given the graduated penalty system in place for clubs beyond that threshold.</p>
<p>There is no guarantee that the new financial model will even be accepted at the league’s annual general meeting in June. If the new standards are approved, the ongoing cases involving Manchester City, Everton, and Nottingham Forest will all still be assessed using the same financial models.</p>
<p>The Premier League clubs rejected extending any more cash proposals to the English Football League (EFL) at a shareholders’ meeting in London on Monday.</p>
<p>According to a Premier League statement, which Sky Sports obtained, “at a Premier League Shareholders’ meeting, clubs agreed to prioritise the swift development and implementation of a new League-wide financial system.”</p>
<p>The statement went on, “This will ensure the Premier League is able to retain its existing world-leading investment at all levels of the game and will provide certainty for clubs in relation to their future financial plans.”</p>
<p>An estimated £900 million would be awarded to the EFL over a six-year period, providing it with 14.75% of the Premier League’s net media income. This arrangement has been discussed in the past. But before getting in touch with the EFL, Premier League clubs are now giving priority to their own financial model agreements.</p>
<p>The government has repeatedly said that it wants the football authorities to come to a new financial settlement between themselves, but it has also warned that the new independent regulator’s “backstop” powers might compel them to do so.</p>

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