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Premier League 'plot to abolish points deductions' and could introduce 'luxury tax'
The Premier League are reportedly considering scrapping points deduction punishments and instead introducing a "luxury tax" in a controversial new idea
The Premier League are reportedly set to abolish points deductions and introduce a "luxury tax" for Profitability and Sustainability Rule breaches.
Weeks after Nottingham Forest were dealt a four-point deduction and Everton were slapped with a 10-point penalty earlier in the season, which was later reduced to six on appeal, England’s top-flight are now reportedly considering changing their punishment for clubs who are in breach of the rules.
Despite throwing Forest and Everton into the deep end of a relegation battle with their punishments, the Premier League could be about to move away from dishing out points deductions following one of the quietest January transfer windows as clubs feared overspending and risking sanctions.
According to the Daily Mail, many officials have deemed PSR unfit for purpose in its current guise, and there are concerns the Premier League could fall from its position as one of the world’s best and richest leagues in the world with clubs no longer able to afford eye-watering transfer fees and wages.
As many as 17 of the 20 clubs are ‘thought to be leaning towards significant change’ – with 14 needing to be in agreement to get a rule change through.
The report says that punishments to Everton and Forest “were draconian and not reflective of why PSR was brought in” and clubs should be able to “have a go” if they have the money to do so and not face a punishment that could see them relegated.
A "luxury tax" has been considered to become the new sanctions, where clubs who overspend will have a financial punishment which would increase the more they spend; however, clubs can still choose to press on should they wish.
The monies collected would then be distributed to the top-flight clubs who complied with the rules, and it was also said that discussions regarding those funds could even see them go into an ‘emergency fund’ to assist EFL clubs in financial peril. It’s unknown whether any monetary penalties would count against the following year’s finances.
Such a tax currently exists in America’s Major League Baseball and National Basketball Association, but both of the US’ major sporting league’s have a ‘hard’ salary cap which clubs cannot exceed. While some Prem clubs want the tax to remove the threat of points deductions entirely, it’s claimed insiders are adamant that any proposal would still include a ‘sporting sanction’.
Elsewhere, UEFA introduced a new rule which limits spending on player and coach wages, transfers and agent fees to 70 per cent of the club revenue – which is said to also be ‘viewed favourably by some’.
An ‘anchoring’ system has also been discussed, which would exist similarly to a salary cap, where the amount any club can spend is directly related to the wage bill spent by the bottom club.
Therefore, if current basement side Sheffield United finish bottom with an average wage bill of £50million, every club would have a set multiple of that figure to spend for the following season. Also breaking that cap would result in a fine.
Daily Star Sunday
The Premier League are reportedly considering scrapping points deduction punishments and instead introducing a "luxury tax" in a controversial new idea
The Premier League are reportedly set to abolish points deductions and introduce a "luxury tax" for Profitability and Sustainability Rule breaches.
Weeks after Nottingham Forest were dealt a four-point deduction and Everton were slapped with a 10-point penalty earlier in the season, which was later reduced to six on appeal, England’s top-flight are now reportedly considering changing their punishment for clubs who are in breach of the rules.
Despite throwing Forest and Everton into the deep end of a relegation battle with their punishments, the Premier League could be about to move away from dishing out points deductions following one of the quietest January transfer windows as clubs feared overspending and risking sanctions.
According to the Daily Mail, many officials have deemed PSR unfit for purpose in its current guise, and there are concerns the Premier League could fall from its position as one of the world’s best and richest leagues in the world with clubs no longer able to afford eye-watering transfer fees and wages.
As many as 17 of the 20 clubs are ‘thought to be leaning towards significant change’ – with 14 needing to be in agreement to get a rule change through.
The report says that punishments to Everton and Forest “were draconian and not reflective of why PSR was brought in” and clubs should be able to “have a go” if they have the money to do so and not face a punishment that could see them relegated.
A "luxury tax" has been considered to become the new sanctions, where clubs who overspend will have a financial punishment which would increase the more they spend; however, clubs can still choose to press on should they wish.
The monies collected would then be distributed to the top-flight clubs who complied with the rules, and it was also said that discussions regarding those funds could even see them go into an ‘emergency fund’ to assist EFL clubs in financial peril. It’s unknown whether any monetary penalties would count against the following year’s finances.
Such a tax currently exists in America’s Major League Baseball and National Basketball Association, but both of the US’ major sporting league’s have a ‘hard’ salary cap which clubs cannot exceed. While some Prem clubs want the tax to remove the threat of points deductions entirely, it’s claimed insiders are adamant that any proposal would still include a ‘sporting sanction’.
Elsewhere, UEFA introduced a new rule which limits spending on player and coach wages, transfers and agent fees to 70 per cent of the club revenue – which is said to also be ‘viewed favourably by some’.
An ‘anchoring’ system has also been discussed, which would exist similarly to a salary cap, where the amount any club can spend is directly related to the wage bill spent by the bottom club.
Therefore, if current basement side Sheffield United finish bottom with an average wage bill of £50million, every club would have a set multiple of that figure to spend for the following season. Also breaking that cap would result in a fine.
Daily Star Sunday