The Premier League is expected to impose spending limits on clubs for the first time as English football appears to follow UEFA’s new financial guidelines.
Premier League clubs once again dominate summer spending across Europe after having a record expenditure of more than £1.8 billion in the summer transfer window. The cost invested by English clubs was more than La Liga, Serie A and Bundesliga combined.
Nonetheless, the reports stated by the Times suggest that Premier League teams will soon be facing limitations on spending as England’s top leagues are keen to comply with the latest UEFA rules.
How Much Spending Restrictions to be Implemented in the Premier League Clubs?
Starting next year, clubs will only be able to spend 70% of their earnings in a calendar year on player salaries, transfer fees, and agent fees. In addition to this percentage, other earnings from player sales can be reinvested.
However, this will be phased in, with 80% in 2024, 70% from 2025 onwards, and 90% in the calendar year 2023. The club will also be allowed a bigger loss during his FFP period of his current three years. From €30m, €60m will be raised if the owner of the club covers additional losses with cash injections. The Premier League now allows him £105m in losses over three years.
The Premier League hopes to introduce similar rules, but will do so at a higher rate than UEFA’s financial plans. The first step is for member clubs to agree to the proposal before the introduction can be phased in.
The top clubs in the division include Manchester United, Manchester City, Liverpool, Chelsea, Tottenham, and Arsenal. They are believed to support the concept, but the Premier League is criticized for having clubs with higher revenue averages than their continental rivals. Given that, it will remain competitive against its European rivals.