News
Premier League confirms new financial system for 2024/25 with major impact on Arsenal, Chelsea and Spurs
The Premier League has released a statement about a new financial system that will be trialled next season. The current Profit and Sustainability Rules allow clubs to lose just £105 million over a rolling three-year period, with many teams facing the possibility of punishments after Everton and Nottingham Forest dropped points during the 2023/24 season.
At the most recent annual general meeting between all 20 Premier League clubs, many topics were discussed, including Wolves’ proposal to abolish VAR, which, unsurprisingly, was not approved. The club’s finances were also a major point of discussion, with Aston Villa’s suggestion to increase losses over a three-year period to £135 million also rejected.
However, there has been one major change that could change the way PSR is handled in the future, with the Premier League releasing a statement regarding the changes. “At the Premier League Annual General Meeting today, clubs agreed to trial an alternative League-wide financial system next season on a non-binding basis.” an official statement read.
“Existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will test Squadron Cost Rules (SCR) and Top-Down Anchoring (TBA) Rules in the shadows.
“This will allow the League and clubs to fully evaluate the system, including the functioning of the new equivalent UEFA financial regulations, and complete their consultation with all relevant stakeholders.
“The global system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League, promote clubs’ aspirations, facilitate viable alignment with other relevant competitions and support clubs’ competitiveness in UEFA club competitions, providing the at the same time certainty and clarity for clubs, fans and stakeholders.
SEE MORE INFORMATION: Premier League confirms six VAR changes after Arsenal, Chelsea and Tottenham vote
SEE MORE INFORMATION: £65m bid, Tottenham exit, Aston Villa talks – Conor Gallagher to Chelsea transfer final verdict
“The SCR will regulate on-pitch expenditure in a proportion (85%) of a club’s football revenue and net profit/loss on player sales. The TBA is a League-level anchor linked to football costs, based at a multiple of the lowest predicted central distribution for that season.
“It is designed to be a preventative measure to protect the competitive balance of the Premier League. This protection is intended to have no impact unless a significant divergence in club revenues occurs.”