Premier League clubs will meet on Thursday to discuss ditching existing profit and sustainability regulations and adopting a Uefa-style framework of financial rules.
Under the league’s rules clubs must not exceed losses of £105m across a three-year period, but executives are braced for a soft launch of new regulations next season with a view to implementing fully the proposed model from the 2025-26 campaign.
An overwhelming majority of teams are thought to have backed proposals to mirror Uefa’s structure at the previous shareholders’ meeting, with as many as 19 clubs thought to support the switch.
Uefa announced two years ago plans to scrap the previous financial fair play system in favour of a squad‑cost ratio setup, which links a club’s spending in areas such as wages, transfer fees and settlements to turnover. Next season such spending must not exceed 90% of turnover, dropping to 70% from 2025-26. The Premier League is widely expected to adopt a similar cap, with a figure of 85% mooted.
Richard Masters, the Premier League’s chief executive, said recently that clubs were being consulted on 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 every season and have to abide by Uefa’s laws. “Over time we have historically aligned with Uefa, because seven or eight of our clubs play in European competition,” he said. “We need to consider whether that is an appropriate move for us, how we do that and when.”
Everton and Nottingham Forest have been found to have breached the league’s rules, with the former deducted 10 points before their successful appeal resulted in the punishment being reduced to six. Forest’s hearing is expected to begin next week, with a key part of their defence hinging on the £47.5m sale of Brennan Johnson to Tottenham on transfer deadline day last summer, outside the 2022-23 financial year.
Forest rejected lower bids from Brentford earlier in the window but held out for maximum profit. A verdict is expected at the beginning of April and Forest would probably appeal against any sanction. Everton could yet face another deduction after being referred to an independent disciplinary commission owing to a second charge relating to the three‑year period up to 2022-23.
Top-flight clubs expect next season to be transitional in terms of implementing 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 in-season sanctioning, to limit the possibility of protracted sagas. Uefa says “breaches result in pre-defined financial penalties and sporting measures”.
