Skip to main content

Could newly promoted Premier League clubs be given help?

The pressing issue of newly promoted Premier League teams being relegated immediately is expected to come under the spotlight at the top-flight clubs’ first meeting of the season next week when future financial rules are discussed.

Ipswich Town, Southampton and Leicester City, who were promoted from the Championship in the 2023-24 campaign, were all relegated last season, the second successive year that has happened. There is a growing feeling that promoted clubs are not being helped by Profitability and Sustainability Rules (PSR) — and that the gap is widening.

Newly promoted Sunderland and Leeds United will have maximum permitted PSR losses of £61million for this 2025-26 season as they have been in the EFL for the previous two years, while those who have been in the top flight will have a £105million limit.

If the prevailing mood is to keep PSR next season — and there is unlikely to be a vote on that until the new year — then one idea doing the rounds is that promotion bonuses should be exempt from PSR calculations. These can be hefty: Leeds’s latest annual report discloses they had to pay £19.2million in player bonuses after winning the Championship.

But while some clubs believe that it would be healthier for the league if promoted sides were more competitive, those who would be at increased risk of relegation may be reluctant to change the rules.

The debate on the future of financial rules is also expected to cover the proposed Squad Cost Rule, which would limit the amount clubs spend on player wages, transfers and agents to 85 per cent of their turnover. It is already used by Uefa, but with a lower figure of 70 per cent.

Labels:

Comments

Post a Comment

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...
Post a Comment
Read more

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...
Post a Comment
Read more

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do
Post a Comment
Read more