PSR: PL considering removing points deductions and replacing them with luxury tax

[mazhar13]

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• The PL clubs are worried that the current PSR will result in the PL no longer being the top league and able to attract the best players.
• The luxury tax money will be redistributed to the PL clubs that are following the rules as well as partly to the EFL "emergency fund".
• Another soft salary cap suggestion: each club's cap is based on a multiple of the lowest wage bill in the PL
  • Example: if Sheffield had the lowest bill at £50m, the clubs above them will have a cap based on a multiple of the figure (e.g. United's cap might be £300m i.e. 50*6)
  • Breaching this cap results in a fine/luxury tax.
• Another PSR proposal: only factor in expenditure on players and coaching staff (fees + wages)
• Another thing to vote on: reverse the ruling on banning related-party transactions

 

[adexkola]

Posting my replies from the other thread

Allow for external capital to flow into the game, unhindered of nonsense like self generated revenue. But have it done in a way that benefits the league and English football, while protecting clubs from insolvency due to taps running dry suddenly.

No, this is actually great*

This is a great way to rein in spending across the board. Establish a threshold. You're free to spend however much you want. But above the threshold, the tax becomes more and more punitive. Spend £100m above the threshold? You must remit an additional £500m to the PL that will distribute that tax to the other 19 teams and rest of the pyramid.

*Under no circumstance must this be applied to current cases being investigated. But going forward great idea.

It wasn't.

But let's proceed with that assumption.

Mandate that all financial commitments made be backed with actual funds placed in escrow.

You want your dictator to fund the next Bruno Fernandez? He will cost 45m + 20m in salary over 4 years. Mandate that all funds not payable immediately be placed in an escrow account, only accessible for the purposes of fulfilling obligations to said player.

If there are any financial issues going forward, this will ensure that all current financial obligations can be paid without putting the club at risk of liquidation or extreme distress.

 

[jasT1981]

Just in time for City's punishment allowing them to stay in Premier League with just fines.

 

[mazhar13]

Posting my replies from the other thread

Allow for external capital to flow into the game, unhindered of nonsense like self generated revenue. But have it done in a way that benefits the league and English football, while protecting clubs from insolvency due to taps running dry suddenly.

Thanks for posting those replies. I should have realised that they were being discussed in another thread. Still, this has even bigger repercussions, especially with the EFL not necessarily fully accepting the recent PL proposals in relation to how the money will flow from them down the pyramid.

 

[Regulus Arcturus Black]

Yeah City will continue to pay double salaries whilst the rest are “reigned” in.
Sounds like more domination to me.

 

[Fortitude]

Terrible.

 

[Andy_Cole]

Just in time for City's punishment allowing them to stay in Premier League with just fines.

This

 

[SilentWitness]

if this comes into play and saves city from any deductions I will find it very hard to watch football ever again.

 

[crossy1686]

Could work, depends on how big the fines are and how much is distributed. If you really want to make them think twice, make the guilty club pay their closest rivals a massive chunk of the tax or force them to sell one of their top earners to a rival.

 

[DomesticTadpole]

if this comes into play and saves city from any deductions I will find it very hard to watch football ever again.

Think if someone gets relegated because of point deduction this season and they get away with it, the poo might just hit the fan.

 

[Fr. Todd Unctious]

Quelle surprise a work around to avoid having to boot City out of the league

 

[bosnian_red]

Being afraid of not affording top stars is such nonsense

 

[MDFC Manager]

Changing the punishments for breaking rules because its too strong of a deterrent. Sounds totally fair and reasonable.

 

[MegadrivePerson]

if this comes into play and saves city from any deductions I will find it very hard to watch football ever again.

Agree.

Modern football has been going in the wrong direction for sometime. This might be the final nail in the coffin for me.

 

[horsechoker]

April fools was 3 days ago

 

[Grundig]

I think we have to understand one thing. It is not City who are running PL and Masters, it is United. Ratcliffe knows very well, after long discussions with Berrada that there is no chance at all that City are quilty. Therefore these changes to make it possible for United to invest in the summer transfer window. Without these changes United are up deep shit creeks when it comes to PSR.

 

[Mb194dc]

The problem is the high chance of a death spiral for clubs from the points deductions. If Everton go down it'll be a case in point, their revenue will fall massively, they'll breach the FFP in the championship as well. They'll be forced in to a fire sale of pretty much any players with value, could well go down again and bankruptcy and oblivion is a real risk from all that.

It could well happen to us as well, if we violate FFP, get a points deduction so we can't get Europe money, have to sell more players to meet FFP, even less chance of Europe, a vicious cycle leading to similar to Everton where we go down eventually and a real possibility we go to the wall ultimately.

In terms of other leagues, they're equally fecked. Barcelona got to sell about €200m this summer, to who I have no idea.

 

[jasT1981]

This

Given its a "historic" breach for City going back a good few season, I am hoping that they are punished with whatever the rules were in the season(s) they broke the rules and these new rules only apply to new breaches after the rules change.

If these rules have been changed to save City, I can see a massive backlash and possible threats to leave the Premier League for the Super League again.

 

[UnitedSofa]

Just in time for City's punishment allowing them to stay in Premier League with just fines.

This

if this comes into play and saves city from any deductions I will find it very hard to watch football ever again.

Quelle surprise a work around to avoid having to boot City out of the league

Changing the punishments for breaking rules because its too strong of a deterrent. Sounds totally fair and reasonable.

While I understand the cynicism, City’s charges would ALWAYS be taking multiple years to work through, they won’t see punishment for a good few years yet. What with appeals etc etc

Not everything is a conspiracy

 

[Zen86]

Yeah the league won’t be able to attract top players if City can’t spend multiples of everyone else

 

[90 + 5min]

Tweet

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• The PL clubs are worried that the current PSR will result in the PL no longer being the top league and able to attract the best players.
• The luxury tax money will be redistributed to the PL clubs that are following the rules as well as partly to the EFL "emergency fund".
• Another soft salary cap suggestion: each club's cap is based on a multiple of the lowest wage bill in the PL
  • Example: if Sheffield had the lowest bill at £50m, the clubs above them will have a cap based on a multiple of the figure (e.g. United's cap might be £300m i.e. 50*6)
  • Breaching this cap results in a fine/luxury tax.
• Another PSR proposal: only factor in expenditure on players and coaching staff (fees + wages)
• Another thing to vote on: reverse the ruling on banning related-party transactions

So if you are rich club with unlimited money you could buy whoever you want without problems and just get a smaller fine.

Just like saying, lets kick small teams and make sure they never win anything.

 

[acnumber9]

The problem is the high chance of a death spiral for clubs from the points deductions. If Everton go down it'll be a case in point, their revenue will fall massively, they'll breach the FFP in the championship as well. They'll be forced in to a fire sale of pretty much any players with value, could well go down again and bankruptcy and oblivion is a real risk from all that.

It could well happen to us as well, if we violate FFP, get a points deduction so we can't get Europe money, have to sell more players to meet FFP, even less chance of Europe, a vicious cycle leading to similar to Everton where we go down eventually and a real possibility we go to the wall ultimately.

In terms of other leagues, they're equally fecked. Barcelona got to sell about €200m this summer, to who I have no idea.

Then they shouldn’t have broken the rules they knew existed.

 

[Zen86]

I imagine the EFL Emergency Fund will cover private jets to the Bahamas for top execs.

 

[Martial]

Corruption. Plain and simple.

 

[Josep Dowling]

Modern football is terrible. Why can’t they just create rules and leave them. If clubs break the rules punish them. It’s really not difficult.

 

[noodlehair]

if this comes into play and saves city from any deductions I will find it very hard to watch football ever again.

Wouldn't have thought you'd be able to apply newly introduced rules retrospectively to an existing investigation. Teams that have already had points deductions will be straight in with the lawyers and the PL wouldn't have any kind of credible defence.

Going forwards the problem is that the Premier League is entirely money orientated and from a money orientated point of view, no one's going to object to this. Despite it being a load of shite.

Most of the other teams don't care that City spent more than they were technically allowed. They care that all this money was flying around and they didn't get given any of it.

I don't even care that City spent more money than they were allowed. I only care that other teams got punished for doing the same thing and the whole competition is meaningless if the rules don't apply to the team that wins but do to everyone else.

I'm starting to warm to the super league idea because what we kind of already have is a shiter version of it.

 

[Telsim]

Yes, a tax is great punishment for entities with infinite money. The Premier League will do whatever it takes not to punish City, even if they have to change the entire rule book and apply it retroactively. This will also completely untie Newcastle's hands as well. Two birds with one stone.

 

[mazhar13]

Looks like most PL clubs don't like the severity of the punishments that both Everton and Forest got hence their revisiting of PSR. With that said, several clubs still aren't keen on a luxury tax, so we'll see how that is reflected in the overall voting.

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[eire-red]

Assume City will still be investigated under alleged breaches under the rules at that time, so wouldn't see any issue there.

As I said in the City thread, all stakeholders from Everton and Nottingham Forest must be pulling their hair out at this. Imagine getting relegated on a rule you know if going to be abolished. Makes a bit of a joke of the whole thing really. Terrible timing for those clubs who are entering into a relegation battle and having this uncertainty looming over them.

 

[Orton]

if this comes into play and saves city from any deductions I will find it very hard to watch football ever again.

Already close to that point with VAR and all these nonsense punishments. It’s making it very difficult to enjoy anything. (Not like watching us helps at all)

 

[The Irish Connection]

Just bin City and change the rules after.

 

[spiriticon]

Money money money ££££££

City laugh in the face of fines. They will gladly breach the rules, pay up and still have enough left over to slip a few quid into the pockets of Premier League bosses

 

[TwoSheds]

The idea that Sheffield or Luton's salary budget should decide what everyone else's is allowed to be sounds nice but doesn't make sense to me. Suppose Ipswich come up next year with a £10m wage budget, are United, Arsenal, Liverpool, City etc. going to have to release half their squads?

Maybe saying maximum of 2-3x the average wage budget would make more sense, but that too would be fraught with difficulty and quite hard to plan for (you can't stop a club fecking all their players off and promoting the youth team if they want for example which could throw off all your forecasts).

 

[HTG]

Modern football is terrible. Why can’t they just create rules and leave them. If clubs break the rules punish them. It’s really not difficult.

Absolutely. But as there aren’t any repercussions for clubs whatsoever, they will just do whatever they want. As long as English fans don’t start organising to protect the game, they will continue to lose more and more of it. There’s no accountability towards the fans, as the fans don’t demand any.

 

[OleGunnar20]

Honestly how have they made such a shambles of this whole situation.

If City end up getting away / off lightly for their bullshittery I won't be engaging with PL football again personally, not that it matters what one fan thinks of course.

The game is in such a sorry state. Its sad to see.

 

[Sweet Square]

Changing the punishments for breaking rules because its too strong of a deterrent. Sounds totally fair and reasonable.

 

[Sassy Colin]

Even with points deductions, this should never happen part way through a season, that's ridiculous. It should be deducted at the start of the following season.

This new proposal is horse shit in any case.

 

[peridigm]

Just in time for City's punishment allowing them to stay in Premier League with just fines.

Exactly. No one should be surprised by this news.

 

[BuzzKillington]

The point of the rule was originally to protect clubs from going under. How does saddling a club that is potentially circling the drain (with a bad income to expenditure ratio) with a massive fine, work towards that goal?

 

[UpWithRivers]

So they are worried that punishing cheating clubs will make the league worse so need to figure out how to let them cheat but not get punished so much? Make that make sense.