Good News :Premier League have abolish points deduction rule as Nottingham Forest points will be reversed back

EXCLUSIVE: Premier League Contemplates Eliminating Points Deductions and Introducing NBA-Style ‘Luxury Tax’ Amid Concerns Over Player Salaries 

 

 

 

Premier League clubs are contemplating the removal of points deductions and the implementation of a ‘luxury tax’, as revealed by Mail Sport.

The significant points deductions faced by Everton and Nottingham Forest, along with a subdued January transfer window

marked by cautious spending to avoid penalties, have led many officials to question the effectiveness of the league’s Profit and Sustainability Rules (PSR).

There are growing concerns that the current structure of the PSR could jeopardize the Premier League’s status as

the top football league globally, as it may no longer be financially feasible to attract and retain top-tier players on lucrative contracts.

The clubs have been considering radical changes, and there’s a possibility of adopting a completely new system during the end-of-season meeting in

June. It’s believed that as many as 17 out of the 20 clubs are inclined towards substantial reform. A consensus of fourteen clubs is required to enact a rule change.

There’s a sentiment among some that the six-point penalty imposed on Everton and the four-point penalty on Forest were excessively harsh and not aligned with the original purpose of PSR.

There’s been talk of implementing a ‘luxury tax’ in which clubs overspending would face increasing financial

penalties, although clubs could opt to proceed regardless. The funds collected, possibly amounting to tens of millions, would be redistributed to compliant

Premier League clubs, with some fines potentially directed to an ’emergency fund’ for struggling EFL clubs.

This concept mirrors the systems in America’s Major League Baseball and National Basketball Association, where the tax is based on player salary

expenditures. In contrast, the NFL and National Hockey League enforce ‘hard’ salary caps prohibiting clubs from exceeding specified spending limits.

While some clubs advocate for the tax to eliminate the risk of points deductions entirely, Premier League insiders insist

that any proposal would still involve a form of ‘sporting sanction,’ aimed at offering flexibility and a safety net.UEFA’s new regulation, limiting spending on player wages, transfers, and agent

fees to 70% of club revenue, garners support from some parties. Additionally, discussions have touched on ‘anchoring,’

a salary cap system linking each club’s spending limit to the wage bill of the lowest-spending club from the previous season, with fines for exceeding the cap.

At the upcoming end-of-season meeting, additional financial matters are under discussion. According to a source, an increasing faction aims to revise

financial regulations so that only expenditures on players (acquisitions and salaries) and coaching personnel are considered over the three-year assessment period.

Presently, only funds allocated to new stadium construction, infrastructure enhancements, youth development, and

community initiatives are excluded from the £105 million limit on cumulative losses over three seasons. Advocates for the inclusion of only player and staff expenses argue that this adjustment

would enable clubs to allocate resources towards areas like content creation, digital infrastructure, and marketing to expand their global fan bases.

In a surprising development, there’s speculation about a vote to overturn the February decision regarding related-

party transactions, referring to agreements within multi-club networks or with sponsors sharing ownership with a club. In February, a modification to these regulations narrowly passed, with twelve votes in favor, six against, and two abstentions. However, some perceive this change and its implications

for the ownership of other clubs abroad as detrimental. It’s rumored that one club, believed to be Manchester City, is contemplating legal action in response.

Many see the opportunity to send a young talent abroad to a club within their network as appealing, as it could enhance their market value.

The dynamics are intricate. Historically, the ‘Big Six’—comprising both Manchester clubs, Arsenal, Tottenham,

Liverpool, and Chelsea—typically aligned in their voting patterns. However, recent developments suggest a significant

change in relationships, with Newcastle, now under Saudi ownership, being incorporated into what’s termed as the ‘Big Seven.’

 

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