Inequality, bias and injustice: Premier League now considering scrapping points deduction as punishment for PSR breach as Man City await charges on 115 PSR breaches
The Premier League are reportedly considering a change to how breaches of Profitability and Sustainability Rules are punished, with a number of clubs in favour of a new system.
This comes after Everton and Nottingham Forest received points deductions this season for exceeding the permitted limit of losses over three years.
Everton’s initial 10-point deduction was reduced to six on appeal, while Forest lost four points. Despite being relegated last season, Leicester City is also facing charges of an alleged breach and could start next season with a points deduction if they return to the Premier League.
Meanwhile, Manchester City are still dealing with 115 charges. Among them, there are accusations of not co-operating with the Premier League investigation, not abiding by PSR regulations, and – most damningly – nine seasons of essentially not giving truthful and accurate information about their finances.
City are treated differently to clubs such as Everton and Nottingham Forest because their situations are completely different. City dispute any wrongdoing, whereas according to the Premier League both Everton and Forest have accepted breaches but believe their reasons for doing so is enough mitigation to avoid strict punishment.
According to the Daily Mail, the Premier League are now considering replacing the points deduction punishment with a ‘luxury tax’. It’s reported that this ‘radical reform’ could be voted in at the end-of-season meeting in June, with up to 17 clubs believed to be in favour.
One idea being considered is to financially penalise clubs that overspend, with the fines increasing the more they spend. The collected money would then be shared among the clubs who followed the rules or put into an ’emergency fund’ to help EFL clubs in financial trouble.
This system is similar to what’s used in America’s Major League Baseball and National Basketball Association, where it acts as a ‘soft’ salary cap.
It is unclear what impact that would have on unresolved cases with Man City charged in February 2023 with more than 100 breaches of the Premier League’s financial fair play regulations dating back to 2009.
Another suggested change is ‘anchoring’, which involves a type of salary cap linked directly to the wage bill of the team who finished last in the Premier League. Alternatively, the rules could be changed to align more with UEFA’s, which restricts spending on wages, transfers, and agent fees to 70 percent of the club’s income.
The Daily Mail also reports that a vote to reverse the February ruling on related-party transactions could also be on the cards. This involves deals within multi-club networks or with sponsors who have the same owners as a club – such as City.
In February, an amendment to these rules was approved by the narrowest of margins. With seven votes needed to block a proposal, there were six against with two abstentions. But some feel that the change, and the knock-on impact it has on ownership of other clubs overseas, is harmful with one, thought to be Manchester City, considering legal action.
