Premier League clubs will meet on Thursday to discuss scrapping existing profit and sustainability regulations and adopting a UEFA-style financial rules framework.
Under league rules, clubs must not exceed losses of £105m over a three-year period, but executives are preparing for a soft launch of new regulations next season with a view to fully implementing the proposed model by starting from the 2025-26 campaign.
An overwhelming majority of teams are believed to have backed proposals to mirror UEFA's structure at the previous shareholders' meeting, with up to 19 clubs believed to support the change.
UEFA two years ago announced plans to scrap the previous financial fair play system in favor of a squad cost ratio setup, which links a club's spending on areas such as wages, transfer fees and deals to billing. Next season, said spending must not exceed 90% of turnover, dropping to 70% from 2025-26. The Premier League is widely expected to adopt a similar limit, with a disputed figure of 85%.
Richard Masters, chief executive of the Premier League, recently said clubs were being consulted about the move. Last month he told the culture, media and sport select committee that more than a third of the league's clubs play continental football each season and have to comply with UEFA laws. “Over time we have aligned ourselves historically with UEFA, because seven or eight of our clubs play in European competitions,” he said. “We need to consider whether it is an appropriate measure for us, how we do it and when.”
Everton and Nottingham Forest have been found to have breached league rules; first discounted 10 points before his successful appeal resulted in the sentence is reduced to six. Forest's hearing is expected to begin next week, and a key part of his defense will depend on the Sale of Brennan Johnson to Tottenham for £47.5m on transfer deadline day last summer, outside the 2022-23 financial year.
Forest rejected lower offers from Brentford earlier in the window but held on to make maximum profit. A verdict is expected in early April and Forest will likely appeal any sanctions. Everton could face another deduction after being referred to an independent disciplinary commission over a second charge relating to the three-year period to 2022-23.
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First division clubs hope that next season will be a transition season in terms of the implementation of new rules. There is some confidence within clubs that a move to such a system would encourage real-time monitoring of finances and more scope for sanctions during the season, to limit the possibility of protracted sagas. UEFA says that “violations give rise to financial sanctions and predefined sporting measures.”
