New Financial Fair Play Guidelines on the Horizon for Premier League Clubs

Premier League clubs are set to discuss the replacement of Profit and Sustainability Rules with new financial fair play regulations at an upcoming meeting. The current rules limit clubs to losses of £105m over a three years period. The proposed regulations align with UEFA’s squad cost ratio system restricting clubs to spending 85% of their revenue on squad costs covering transfers, wages and agents’ fees.

This move may lead to disparities between larger and smaller clubs in player investment. The discussion will take place during a two days meeting but a vote is not expected this week. UEFA’s rules already apply to clubs playing in Europe. The shift aims to prevent excessive spending and will require the approval of at least 14 Premier League clubs.

The current Profit and Sustainability Rules limit clubs to a maximum loss of £105m over three years with a restriction of £15m from their own funds. The remaining £90m must come from secure funding typically provided by club owners.