Premier League clubs set to vote on change from PSR points deductions to fines – Report

A new exclusive on Thursday has now reported that Premier League clubs could be set to move from the current PSR punishments.

The report from The Mail says that their information is that Premier League clubs are going to look at changing from the look current points deductions to a kind of system that operates in certain American sports.

The so called ‘luxury tax’ is something that relates to the finances of America’s Major League Baseball and National Basketball Association.

It is used as a ‘soft cap’ on the allowed salaries of each team’s playing squad, where if they spend more than the guidelines, then they are ‘taxed’, the more they overspend the more they are ‘taxed’. Rather than having points deducted for example.

The Mail saying that Premier League clubs if adopting such a system with regard to overall spending by each club, could see the ‘taxes’ for overspending then redistributed amongst the other Premier League clubs and/or those in the lower leagues.

As always, any major changes in how Premier League clubs operate and the rules they follow, are never done for the best of reasons.

They are always done out of self-interest.

In this case, The Mail say that their information is that Premier League clubs are looking at changing to fines from points deductions, because they are worried that ‘top stars will leave if rules restrict their pay…’

Adding that…

‘The hefty points-deduction punishments for Everton and Nottingham Forest – coupled with a quiet January transfer window as clubs did not dare overspend and risk sanction – have left many officials to deem the league’s Profit and Sustainability Rules (PSR) not fit for purpose.

There are also grave fears are that, under its current guise, PSR will see the Premier League fall from its lucrative position as the world’s best league because it will no longer be able to afford the best players on the best salaries.’

The report says that these radical reforms have already been discussed and that the Premier League clubs could make the change away from points deductions to fines / taxes, when they meet in June after the season ends.

Very interesting to see the newspaper report stating that their sources have told them that ‘As many as 17 of the 20 clubs are thought to be leaning towards significant change’ and so with fourteen clubs needing to vote through such a major change, it looks very much on the cards.

The Mail detailing:

‘Some feel that the eventual six-point penalty dished out to Everton and the four handed to Forest were draconian and not reflective of why PSR was brought in.

They believe that should clubs wish to ‘have a go’ and have the money to do so, they should not face a punishment that could plunge them into the Championship.’

Newcastle United of course getting a special mention in this exclusive…

‘Traditionally the ‘Big Six’ both Manchester clubs, Arsenal, Tottenham, Liverpool and Chelsea, have tended to vote together. However, it is understood that there has been a ‘seismic shift’ in relationships, with Saudi-owned Newcastle now included in a ‘Big Seven’. Some feel that a rules to encourage investment would result in a more competitive league which would increase interest levels and safeguard against the future.’

This is where we are at, it is ALWAYS about the money and self-interest.

If Premier League clubs, especially the usual suspects, see the way things are going as not benefiting them, then suddenly they can change their minds VERY quickly.

Today’s report says that all kinds of potential changes are part of the debate as to how Premier League clubs may decide to change things, when it comes to how they are allowed to operate financially.

Whether points deductions were ever the right way to go is one thing, however, what is for certain is that when those points deductions aren’t implemented for the season in question, then it is in reality plain stupid.

As a prime example, Everton have had six points deducted this 2023/24 season, for overspending in the three seasons that ran up to and including the 2021/22 season. If those six points had been deducted in that 2021/22 season, then Everton would have been relegated in 18th place on 33 points, with Burnley on 35 points staying up in 17th, instead of going down as the third bottom club.

The same thing is happening with the three seasons up to and including the 2022/23 season, for overspending in those three seasons, Forest have already lost four points this season, Everton look set for sure to lose more this season for that trio of seasons, whilst Leicester who are now in the Championship are also in line to get punished with PL charges against them. Leeds finished last season second bottom and with those three clubs above them, two of which stayed up. If points deductions had been applied for all three to last season’s totals, who knows who would have stayed up and gone down?

The whole thing is a total mess and if you are kind you might say that the Premier League clubs who voted through these current punishments are now experiencing the ‘law of unintended consequences’ with the total shambles, or you might more harshly say that they looked to do these rules simply due to the usual suspects trying to protect their privileged positions and stop others breaking into their elite grouping.

Either way it is a total shambles and isn’t sustainable.

You also have to very much think that they are looking at a way of dealing with the massive Manchester City issue ahead.

If the 115 charges are proved against them, then Man City will have been found far far more guilty of wrong doing than the likes of Forest and Everton. So what punishment could and should be applied to them? To my mind, it should be relegation as a minimum, with further points deductions, fines and transfer embargoes etc etc.

I can foresee a way out, if Premier League clubs vote for major change and get rid of points deductions. With Man City potentially getting massive fines as well as other punishments such as transfer embargoes BUT escaping getting relegated for breaking the rules.

The thing is as well, fines (‘taxes’) for breaking spending limits have already been applied in English football. I am not sure what is the position now but Eddie Howe’s Bournemouth just one of the clubs previously taxed / fined.

The Guardian reporting…

‘In 2018, Leicester agreed to pay the EFL £3.1m to settle the league’s claim they breached financial rules in 2013-14. Queens Park Rangers agreed a £42m settlement with the EFL after breaching spending limits. After winning promotion to the Premier League as champions in 2014-2015, Bournemouth were fined £7.6m for breaching financial fair play rules and later agreed a £4.75m settlement with the league.’

Interesting then to see exactly what the Premier League clubs decide in June…