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Premier League Clubs Agree New Spending Controls

Premier League Clubs Agree New Spending Controls

Yesterday, Premier League clubs voted for new legislation on spending, with a less stringent version of UEFA's Financial Fair Play regulations set to be enforced in England's top flight from 2013/14.

The Football Association have not been involved in these talks, but Premier League bigwig Richard Scudamore suggests there will be an 'absolute prohibition' on clubs posting losses of £105m over the next three years. Any club making a loss of £5m a year will have be obliged to guarantee those losses against the owner's assets.

A restriction on salary increases will also be implemented. 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
2014/14: £8m
2015/16: £12m

The Short Term Cost Control measure applies only to clubs with a player wage bill in excess of £52m in 2013/14, £56m in 2014/15 and £60m in 2015/16.

Premier League Chief Executive Richard Scudamore said, 'Normally we stay silent on sanctions as the commission has a free range but clearly if there is a material breach of that rule we will be asking the commission to consider top-end sanctions.'

He added: 'The balance we have tried to strike is that a new owner can still invest a decent amount of money to improve their club but they are not going to be throwing hundreds and hundreds of millions in a very short period of time.

'While it has worked for a couple of clubs in the last 10 years, and I am not critical of that, if that's going to be done in the future it's going to have to be over a slightly longer term without the huge losses being made.'

13 Premier League clubs voted for the new sanctions, 6 voted against. Reading obstained from the vote.

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Writer:Tim Stillman
Date:Friday February 8 2013
Time: 9:04AM

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Comments

0
http://www.independent.co.uk/sport/football/news-and-comment/sam-wallace-elite-clubs-seek-to-reinforce-their-closed-shop-at-the-top-8486177.html good article here by Sam Wallace in the Independent with regards to these new rules.
Little Dutch
08/02/2013 09:19:00
0
A depressing read over my muesli this morning, all it does is reaffirm what the owners such as Kroenke (roach), and the others that are here purely for profit are all about. At least the oligarchs want to win and the prestige associated with it.
shewore
08/02/2013 10:50:00
0
although such initiative is lauded, there is concern that epl in general would be less competitive as it would become less attractive for world class players to ply their trade here. spain is already a preferred destination now due to their lower tax rate. as a gooner, i am not complaining as we already have such self-imposed restrictions in place for years
Joe_@**
08/02/2013 10:54:00
0
now kroenke has all justifications he needed to reap the gain from the club's big fat saving at the expense of the fans who endured endless frustration from the frugal policy over the years
Joe_@**
08/02/2013 11:07:00
0
Interestingly diverse reactions to what is a sensible move. Sam Wallace asks what happens to the money that isn't spent on wages and transfer fees? Not the brightest question in my book given that most PL clubs make a loss. How about using it to avoid making losses? Why not use the profits to develop the basic raw material of their industry? Say better facilities for supporters, lower ticket prices, maybe investing in long term structural improvements using academies to develop their own players. It should also make the league more competitive which is going to be in the interests of more supporters of more clubs. The bigger clubs looking to participate in the CL will, in any event, be restricted by the much tougher Uefa FFP rules while those aspiring to reach that level will use the looser PL conditions until they look as though they can get there. Maybe football stands a better chance of being a real competition once more. Amazing that some can only see negatives.
Amos.
08/02/2013 11:12:00
0
My money's on it not going on those things Amos, especially for us
shewore
08/02/2013 11:44:00
0
Unlike you to be so cynical shewore! Some of it has already gone on those things. Facilities at the club are good, they've improved the environment around what is after all a new state of the art stadium. They've invested money in developing players and training and academy facilities so your money is already at risk. Ticket prices will always primarily be driven by supply and demand in which case they, as with all clubs, will have to maintain or increase the demand. We're already a pretty good club to follow, if you choose to follow a football club, while remaining financially sound and secure enough to ensure we can challenge on an enduring basis. What's to be cynical about?
Amos.
08/02/2013 11:54:00
0
I'm cynical cos I don't trust a non football man who's in charge of my club and who's only here to make money out of something he probably had never heard of til 5 years ago. Arsenal is just an investment opportunity cos of the frugal way the club's been run under Wenger and the good position we're in to make money out of this FFP in the future.
shewore
08/02/2013 12:31:00
0
We've never had anything other than non-football men in charge of the club! Kroenke will only make money out of the club if he makes money for the club. That's the way proper business works. The club hasn't been run frugally. We've spent £400m on a new stadium and have the 4th highest spend on player budgets in the PL while also being among the highest gross spenders on transfer fees. I think you're confusing frugal with prudent.
Amos.
08/02/2013 12:38:00
0
Don't split hairs, you know exactly what i mean, I don't mean ex arsenal captains running it for example. It's a lot harder not to make money in this business as Arsenal in the next few years, he doesn't have to be a mastermind, he has to sit back, not invest anything in the team, and watch the cash roll in - as i've said over, and over, and over again.
shewore
08/02/2013 13:23:00
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