The Premier League’s existing profit and sustainability regulations will continue for the next season, despite unanimous agreement among clubs to consider altering the rules at a meeting held on Thursday.
Currently, clubs are restricted from reporting losses exceeding £105 million over a three-year period.
A decision on whether to transition to a model akin to that adopted by UEFA, which allows for squad spending in relation to revenue and player sales, is scheduled for June. However, as the specifics are yet to be finalized, the current regulatory framework will persist.
Both Everton and Nottingham Forest have faced point deductions for violating these regulations. Everton incurred a total deduction of eight points, while Forest was penalized by four points.
Some have criticized the existing rules for being excessively restrictive and favoring clubs with higher revenues.
According to UEFA regulations, clubs are limited to spending no more than 70% of their revenue on squad expenses. At the upcoming vote in June, clubs will determine whether they prefer to adopt a similar model.
However, it is anticipated that a more realistic 85% cap will be favored, as it is believed to allow for ambition among clubs not participating in European competitions.
Nevertheless, the timing of such a decision means that the rules will not be altered for the next season. Even if the specifics surrounding squad expenditure regulations are finalized in time for the Premier League’s annual meeting in June, they will initially be implemented in a provisional manner.
The process of transitioning and whether the Premier League will gradually reduce the cap over time, similar to UEFA, or implement it immediately, is yet to be determined.
It is anticipated that the principle of point deductions for clubs exceeding the spending limits will persist, even if the new regulations are introduced.