The Premier League’s revamped regulations around profitability and sustainability could be replaced as soon as this summer, in time to be implemented for the 2024-25 season.
The current PSR rules that have been in place since 2013 have attracted widespread criticism and controversy as the League has started penalising clubs for breaching the agreed threshold, starting with Everton’s infamous 10-point deduction last November that was reduced to six last month by an independent appeal board.
Nottingham Forest were also charged earlier this year, with an Independent Commission sitting last week to hear the League’s case against them, and Leicester City face penalties should they be promoted from the Championship this season.
Under the existing PSR, that lacked a clear sanction framework, clubs can lose up to a maximum of £105m over a rolling three-year period. Everton were found to have breached that limit for period ending with the 2020-21 season and face being punished for a large part of the same period, ,having been charged with exceeding it again in 2022-23.
Those regulations will be replaced with a framework more akin to that used by Uefa for its Financial Fair Play rules which allow clubs to spend a percentage of their revenue on players, with the Premier League reported by Sky Sports to be allowing up to 85%.
The changes, if implemented this summer, would only affect future transgressions – all three of Everton, Forest and Manchester City who have pending PSR cases, would be subject to the existing rules, as would be the case for any charges brought against Chelsea and Leicester.
A statement from the Premier League read:
At a Premier League Shareholders’ meeting, clubs agreed to prioritise the swift development and implementation of a new League-wide financial system.
This will provide certainty for clubs in relation to their future financial plans and will ensure the Premier League is able to retain its existing world-leading investment to all levels of the game.
Alongside this, Premier League clubs also re-confirmed their commitment to securing a sustainably-funded financial agreement with the EFL, subject to the new financial system being formally approved by clubs.
The League and clubs also reaffirmed their ongoing and longstanding commitment to the wider game which includes £1.6 billion distributed to all levels of football across the current three-year cycle.