Man United, Newcastle and Aston Villa have been dealt a major blow with the Premier League's profit and sustainability rules set to remain in place for a further year, amid the outcome of a legal challenge from Man City. Clubs had initially agreed to sign up to new protocols to replace the existing, controversial Profit and Sustainability Rules (PSR). Plans to introduce a new Squad Cost Ratio limiting clubs to spending 85 per cent of their revenue on player wages, transfers and agent fees has been delayed.
A system, known as anchoring, had also been provisionally approved by clubs last year and expected to be introduced for next season. Clubs have now voted to delay its introduced for a further year, with the existing rules set to remain in place next season. The decision to delay the introduction of the new rules was reportedly made as a result of Man City's latest challenge to associated party transaction (APT) regulations.
The reigning Premier League champions last week informed the Premier League it will seek an arbitration hearing over amendments to APT regulations. City scored a victory over the competition when an arbitration panel found elements of rules on deals with parties linked to clubs were ‘unlawful’. However, the Premier League then swiftly made a number of amendments, which were voted through by a majority of their clubs.
The PFA last week after threatened to take legal action against the Premier League over the proposed 'anchoring' system. The system would limit clubs spending on transfers, wages and agent fees. The precise ratio has yet to be determined, but the new rules are expected to 'anchor' spending to around five times the income of the bottom club. A total of 16 clubs voted in favour of exploring anchoring last year, with Manchester United, Manchester City and Aston Villa voting against and Chelsea abstaining.
