Following a Shareholders meeting on Monday, the Premier League have agreed to implement a new ‘League-wide financial system’ that will impact the FFP and PSR rules that dictate clubs ability to spend.
The new system will be aligned with UEFA’s squad cost ratio rules and could even come into action ahead of this summer’s transfer window.
The current system allows clubs to make losses of £105m over three seasons. Clubs will be limited to how much of their revenue they can spend on transfers and wages and Sky Sports report that this could be set at 85%. So, the more we make – via commercial deals or player trading – the more we can spend, although there’s early suggestions that the incoming changes will benefit those in European competitions.
A Premier League statement said: ‘At a Premier League Shareholders’ meeting today 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 £1.6billion distributed to all levels of football across the current three-year cycle.
‘The Premier League’s significant funding contributions cover all EFL clubs and National League clubs, as well as women and girls’ football, and the grassroots of the game.’
BREAKING: Premier League clubs have agreed to prioritise the swift development and implementation of a new League-wide financial system.
The new system will be aligned with UEFA's squad cost ratio rules 👇 pic.twitter.com/1OIrQAAejX
— Sky Sports News (@SkySportsNews) March 11, 2024
