Newly agreed Premier League major FFP change will impact Chelsea Arsenal and Tottenham

Newly agreed Premier League major FFP change will impact Chelsea Arsenal and Tottenham

Premier League clubs, including Arsenal, Chelsea and Tottenham, have unanimously voted in favour of new Premier League Profit & Sustainability Rules in principle, ahead of this summer’s AGM.

The new spending rules would replace the current set of regulations in 2025/26 with the format being similar to that which UEFA adopted two years ago, albeit with a crucial difference.

The legislation will be a two-tier system whereby Premier League clubs competing in Europe are allowed to spend 70 per cent of their revenue and those not in Europe have an 85 per cent threshold. UEFA is set to have a straight 70 per cent revenue limit for all its participant clubs.

The idea is that, given those in European competition will receive boosted revenue for participation and progression, this will help reduce the gap between ‘the best’ and ‘the rest’. It is thought that the £105m loss limit will not be raised and that points deductions and other sporting sanctions will remain as punishment options, as well as financial sanctions.

These proposals will need to be ratified at the Premier League’s AGM, with the vote set to take place on June 5. Whilst the plans themselves received full backing, there is still some minor discrepancy on how they will be implemented.

According to The Athletic, a number of clubs have spoken about a buffer zone for less severe cases that do not merit points deductions, while others have mooted a ‘luxury tax’, that allows clubs to overspend without sporting blemish but face increasing financial penalties with every year they go over – something which would favour the ‘bigger’ clubs.

UEFA’s format is set to be activated in the 2025/26 season, which is when the Premier League is looking to commence its new regulations. By keeping the loss threshold at 70 per cent for those competing in Europe, it aligns with UEFA’s own rules, keeping the line clearer.

Under UEFA’s incoming rules, clubs that persistently and grievously overstep the mark would come in for heavier sanctions than mere financial penalties, and the Premier League is thought to be considering adopting a similar policy.

The alleged PSR cases against Everton, Nottingham Forest, Leicester City and Manchester City – plus any more that arise before the new rules would come in – still stand. Meanwhile, a deal with the EFL will also be agreed, but not before these rules have been ratified.

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