Redaction Willow Austin with Football365
Published on 2024-04-04 13:06:08
The Premier League is reportedly considering a major change in their disciplinary system by replacing points deductions with a luxury tax on clubs. This comes as Manchester City awaits the outcome of their Financial Fair Play (FFP) case.
This season, both Everton and Nottingham Forest have faced points deductions, with Leicester City also being charged for breaching Profit and Sustainability Rules despite not being in the top flight. Clubs are typically allowed maximum losses of £105m over a three-year assessment period, with reductions for seasons spent in the Championship.
Nottingham Forest, who have appealed their four-point deduction, expressed dissatisfaction with the Premier League’s handling of the situation. They felt that the punishment eroded trust in the governing body, despite their cooperation with the investigation.
The idea of abolishing points deductions and implementing a luxury tax has been proposed by the Premier League. Many club officials believe that the current Profit and Sustainability Rules are inadequate, leading to discussions among clubs for radical reform. The introduction of a luxury tax would penalize clubs that overspend, with fines potentially going towards an emergency fund to assist struggling EFL clubs.
While these changes are being considered, unresolved cases like Manchester City’s FFP charges from 2009 could be affected. The club faces the possibility of a points deduction or expulsion, with former Everton CEO Keith Wyness suggesting that expulsion is a potential outcome for City if found guilty.
Overall, the Premier League may undergo significant changes in its disciplinary and financial regulations in the near future. Some clubs are in favor of alternative measures to control excessive spending and redistribute funds within the league, potentially reshaping the landscape of English football.
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