The shadow looms large over Premier League football at the moment.
Premier League confirm new FFP rules with Manchester United and Man City impact
06.06.2024 - 16:09 / manchestereveningnews.co.uk
The Premier League will trial new finance rules next season that will “shadow” the current Profit & Sustainability Rule [PSR].
The new legislation will be non-binding, with clubs - including Manchester United and Man City - still beholden to present PSR rules. The new alternative measures being trialled contain two new facets: Squad Cost Rules (SCR); and Top to Bottom Anchoring Rules (TBA).
SCR will limit a club's on-pitch spend to 85% of a club's revenue while TBA will regulate football costs in an anchoring system that see the implementation of a spending cap valued at “a multiple” of the bottom club’s distribution money.
The trial was given the green-light at Thursday’s Premier League AGM. There had been complaints that clubs were being punished for trying to cut the gap to the ‘big six’, after Everton and Nottingham Forest were handed points deductions over the past year.
READ MORE: Premier League make scrap decision on VAR as Manchester United cast vote
READ MORE: Premier League AGM LIVE
A statement from the Premier League said: "At the Premier League’s Annual General Meeting today, clubs agreed to trial an alternative League-wide financial system next season on a non-binding basis.
"The existing Profitability and Sustainability Rules (PSR) will remain in place, but clubs will trial Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) in shadow.
"This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.”
The statement continued: "The overall system aims to improve and preserve clubs’ financial sustainability and the competitive balance of the Premier League,
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