LONDON: Premier League clubs will be punished with a points deduction if they breach new spending controls which mirror the philosophy if not the detail of UEFA’s financial fair play regulations writes KEIR RADNEDGE.

No club will be permitted to make a total loss of more than £105m over the next three seasons (2013-16) and must limit player wage bills from next season. The stated aim of ‘Premier League Financial Regulation’ is to improve the sustainability of clubs.

UEFA’s FFP allows only a £38m (45m euros) loss, significantly less than the Premier League limit.

The headline outcome will be in preventing a billionaire new owner from buying instant success in the manner of Roman Abramovich at Chelsea and Sheikh Mansour at Manchester City.

Chief executive Richard Scudamore said: “As with all things in our rulebook, you will be subject to a disciplinary commission . . . if there is a material breach of that rule we will be asking the commission to consider top-end sanctions.”

There would be an “absolute prohibition” on teams reporting losses of more than £105m over the next three years, with the first sanctions possible in 2016.


Of the 20 top-flight sides, only Manchester City, Chelsea and Liverpool have reported losses of more than £105m over the last three years, according to the most up-to-date accounts.

However ‘yes’ vote barely achieved the necessary two-thirds majority of the 19 votes. Fulham, West Bromwich Albion, Manchester City, Aston Villa, Swansea City and Southampton all voted against. Chelsea, initially opponents, voted in favour.

Scudamore added: “Over the past decade the Premier League has enjoyed unprecedented growth driven by the performance of the clubs and the strength of the competition.

“With that growth challenges have presented themselves, and it is of great credit to the clubs that they have always been alive to these challenges and adopted the appropriate governance measures when necessary.

“The Rule Book has been enhanced over recent years with the introduction of, for example, the Owners’ and Directors’ Test, Future Financial Information, Means and Abilities Test, HMRC Quarterly Reporting and Directors’ Reports.

“The new financial regulations will further benefit the sustainable running of their businesses, while allowing secure owner investment, as well as enhance the reputation of the Premier League as an organisation that takes its responsibilities in the governance arena seriously.”

Long-term sustainability regulation

From season 2013/14 Premier League clubs cannot make a loss in excess of £105m aggregated across seasons 2013/14, 2014/15 and 2015/16.

Any club that makes a loss up to that limit will be subject to a tighter regulatory regime that includes:

— Secure owner funding for three years ahead

— Increased future financial information over the next three seasons

Short-term cost control Premier League clubs are restricted in terms the amount of increased PL Central Funds that can be used to increase current player wage costs to the tune of:

2013/14: £4m

2014/15: £8m

2015/16: £12m

** The short-term cost control measure applies only to clubs with a player wage bill in excess of £52m in 2012-13, £56m in 2014-15 and £60m in 2015-16.

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