Home News Premier League clubs “considering” scrapping points deductions & PSR rules

Premier League clubs “considering” scrapping points deductions & PSR rules

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Premier League clubs are reportedly “considering” scrapping Profit and Sustainability Rules (PSR) and instead introducing a so-called ‘luxury tax’.

A report from Mike Keegan in the Daily Mail has revealed that Premier League clubs are considering getting rid of PSR (what used to be Financial Fair Play), and bringing in a new luxury tax.

Fourteen of the 20 Premier League clubs would need to be in agreement to push through a rule change, and Keegan says this could be met.

“Radical reform has been discussed among the clubs and an entirely new system could be voted in at the end of the season meeting in June,” the report states.

“As many as 17 of the 20 clubs are thought to be leaning towards significant change.

MANCHESTER, ENGLAND - Monday, August 23, 2010: Manchester City's Chairman Khaldoon Al Mubarak (L) with Owner Sheikh Mansour bin Zayed al Nahyan sees his side take on Liverpool in his first ever Premiership match at the City of Manchester Stadium. (Photo by David Rawcliffe/Propaganda)

“Some feel that the eventual six-point penalty dished out to Everton and the four handed to Forest were draconian and not reflective of why PSR was brought in.”

Instead of PSR, a so-called luxury tax has been suggested. This would involve clubs that spend over the limit having to pay a fine that is redistributed to Premier League and EFL clubs.

The news has caused controversy, with several questions being asked as to the motives behind the possible changes.

For example, clubs that are willing to overspend on players are more than likely going to be willing to pay the associated levies, therefore rendering the tax ineffective as a deterrent.

It could leave clubs such as Everton, that have only managed to avoid serious financial trouble due to having spending restrictions applied, in even more difficult situations.

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Without a sufficient disincentive, there is more chance reckless owners will run their clubs into serious trouble. It also brings into question the fairness of the competition.

If it weren’t already, it really would become a league for those with the most money to be succesful, rather than favouring clubs that are run well.

It seems league are trying to say that without altering the current PSR rules, they won’t be able to continue attracting the best players – seems unlikely.

Teams competing in Europe would also still have to comply with UEFA’s FFP rules, which limit club’s spending on wages, transfers and agent fees to 70 percent of the overall club revenue.