The Premier League’s Profit and Sustainability Rules restrict financial losses to £105m over a rolling three-year period – although it feels like a system that protects the ‘big six’ and limit the growth of everyone beneath them.
It’s a flawed system that is now dominating every transfer window, where clubs looking to compete aren’t able to strengthen while others (often Chelsea) seem free to spend without the risk of sanctions.
The whopping advantage the ‘big six’ have made up from a commercial perspective plays a part, but that only adds to this feeling that PSR protects the ‘big boys’, with those looking to join them at the top table often forced to sell or limited in what they can spend.
Shearer hits out at PSR
Speaking on the Rest Is Football podcast, Alan Shearer has questioned PSR and called for the rules to the ‘dramatically changed’.
The former Toon striker questions how Nottingham Forest’s growth will pan out after what promises to be a huge season for the Reds, being conscious of the fact Newcastle and Aston Villa – two clubs who recently secured top-four finishes – had to sell just as they hoped to kick on.
Asked if there was one thing he’d like to see change in modern day football, Shearer said: “Get rid of the PSR rules…dramatically change them.”
“They are (competing) this season, but it’s a big but. Nottingham Forest have come in and they have challenged the big boys. But over recent seasons, we have seen Newcastle do that and disappear. We have seen Aston Villa do that and they’re now eighth.
“Would that happen to Forest? Would they be able to go on and spend again? Look at where Bournemouth are and what they are doing.
“I’ve always said the way they are at the minute doesn’t sit easy with me because it’s not designed for anyone to come in and challenge the big boys. You might do it for one season but, after that, you’re not able to do it.
“Ultimately, being competitive all boils down to the finances.”
January activity (or lack of) sums up PSR mess
We’re approaching the final 10 days of the January window and it feels like it’s been another quiet month across the board, Man City aside.
Premier League sides remain restricted to losses of £105m over a rolling three-year period and Aston Villa recently had a bid rejected to increase that limit to £135m; a proposal that was conveniently rejected by ‘big six’ clubs such as Liverpool.
Not only is PSR limiting what so many billionaire business’ can spend, we have ‘big six’ sides with huge commercial revenues that we seem unable to match given the new rules in place on ‘fair market value’ sponsorship deals.
Back to transfers, Newcastle haven’t signed a first-team player fo three transfer windows in a row, with PSR and spending restrictions a constant source of frustration for the club, Eddie Howe and fans.
I understand the need to protect football clubs and promote sustainability, but there’s something off about it all when owners worth hundreds of billions are being told they must sell-to-buy when Man City invest heavily with 115 charges and Chelsea spend a BILLION within two years without a single FFP breach.
The only way to bring about change is through this corrupt system being at the forefront of football conversation at every level, and legal challenges being made under anti competition laws.
Joseph(Quote)
I totally agree with Alan Shearer but I can’t understand why the other 14 clubs in the premier leaguvote for changes to these rules as surely they can out vote the so called big six .One team that Alan forgot to mention is Leicester who won the League only to really struggle and are almost certain to be relegated along with the other 2 promoted teams from last year and it will probably happen with the next 3 promoted teams this year and so it goes on and on . How on earth can it be fair when the likes of Chelsea are allowed to buy an almost 2nd team in one year . Let’s have a level playing field before it gets altogether boring .
R Brown(Quote)
In what other business would an investor be prevented from putting money into the organisation to improve it!
Anthony(Quote)