Premier League Clubs Vote in Favour of New Financial Regulations
By Community | February 7, 2013
Premier League Clubs today agreed in principle to a system of enhanced financial regulations, which are designed to further improve the sustainability of clubs.
The Premier League Financial Regulation includes a sustainability clause that will require clubs to work towards break-even, while allowing a degree of owner investment going in as equity. A short-term cost control protocol was also agreed, which would limit the amount clubs could raise their player costs by above an agreed floor from centrally distributed revenue.
From the 2013/14 season Premier League clubs cannot make a loss in excess of £105m aggregated across seasons 2013/14, 2014/15 and 2015/16.
If the rules are broken the Premier League will not be afraid to offer up a points deduction as punishment.
Richard Scudamore, Premier League Chief Executive, said: “As all things in our rulebook you will subject to a disciplinary commission.
“The clubs understand that if people break the £105m we will look for the top-end ultimate sanction range – a points deduction.
“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.”
Scudamore said that the measures would mean it will take longer for benefactor owners to achieve success, but that it would still be possible.
He said: “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.
“I think at £105m you can still build a very decent club with substantial owner funding but you have to do it over time, you can’t do it in a season.”