Yahoo Finance Premier League in talks to scrap financial rules which led to Everton points deduction
The Premier League is considering scrapping the controversial Profit and Sustainability Rules which led to Everton being docked 10 points.
League chief Richard Masters told MPs today that the move was in the consultation stage and would be discussed by clubs at a meeting next month.
The financial rules, which currently cap losses over a three-year period, look likely to be brought into line with those at European level, which has moved to a new model.
That would see clubs only permitted to spend a fixed percentage of their income on squad costs and monitored in real time rather than retrospectively.
It comes after Everton were charged with breaches of PSRs for a second time earlier this week. Nottingham Forest were also charged by the Premier League.
“The Premier League is considering moving away from PSRs to a squad cost ratio mechanism. That is now in consultation,” Masters told the Culture, Media and Sport select committee.
The Premier League chief executive added that PSRs would remain in place next season and could even be retained alongside squad cost ratios.
Proposals under discussion would see clubs playing in Europe limited to spending 70 per cent of revenue on squad costs, with other teams permitted to spend 85 per cent.
Everton blasted PSRs as “deficient” on Monday after being found in breach for 2021-23, a period which overlaps with their previous charges.
Having fought their way to mid-table safety following the 10-point penalty in November but fresh charges raise the prospect of another deduction which could relegate them to the second tier.
Masters rejected suggestions from CSM committee chair Dame Caroline Dinenage MP that the disciplinary process had been “messy”.
“I don’t think it’s messy,” he said. “No one likes enforcing the financial rules. They were brought in in 2013-14 with the specific purpose post-Portsmouth [insolvency] that clubs’ spending couldn’t go too far. But we must do it, because we must think about the other clubs who have complied, and their fanbases.”
Masters said a decision on Everton’s proposed takeover by 777 Partners was “weeks” away, but indicated it had been held up by unsatisfactory answers provided by the US fund.
He revealed a date had been set for proceedings in the long-running disciplinary case against champions Manchester City relating to more than 100 charges of breaching financial rules, but said he could not share it.
Investigations into Chelsea were continuing, after their owners came forward with evidence of potential financial breaches under Roman Abramovich’s previous regime, he added.
