Thursday 07 February 2013

The new financial rules agreed by clubs explained

More information on the new financial rules agreed to by the Premier League clubs

The Premier League clubs on Thursday agreed in principle to a system of enhanced financial regulations, which are designed to further improve the sustainability of clubs.

Here is more information to the agreed regulations:

Long-Term Sustainability Regulation

From the 2013/14 season Premier League clubs cannot make a loss in excess of £105m aggregated across seasons 2013/14, 2014/15 and 2015/16.

Any club that makes a loss up to that limit will be subject to a tighter regulatory regime that includes:

- Secure owner funding for three years ahead
- Increased future financial information over the next three seasons.

Short-Term Cost Control Measure

Premier League clubs are restricted in terms the amount of increased PL Central Funds that can be used to increase current player wage costs to the tune of:

2013/14: £4m
2014/14: £8m
2015/16: £12m

The Short Term Cost Control measure applies only to clubs with a player wage bill in excess of £52m in 2013/14, £56m in 2014/15 and £60m in 2015/16.

Background to new financial rules >>>

Premier League clubs agree to new financial rules >>>

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Key Points

  • Premier League clubs agree in principle to new financial regulations
  • Clubs cannot make a loss in excess of £105m aggregated across seasons 2013/14, 2014/15 and 2015/16
  • Any club that makes a loss up to that limit will be subject to a tighter regulatory regime