The Premier League will from subsequent season transfer to a new system of financial truthful play primarily based on squad prices.
The clubs met in London on Friday to vote on three doable strategies of changing revenue and sustainability rules.
Squad Cost Ratio (SCR) obtained 14 votes in favour and 6 in opposition to, which is the minimal quantity that’s required to actual a rule change.
Clubs could have a restrict of 85% of income, though groups in Europe should adhere to Uefa’s restrict of 70%.
Rules round sustainability, which set out a membership’s financial spending plans over the medium and long run, had been handed unanimously.
But anchoring, which might have positioned a prime restrict on spending primarily based on the cash earned by the underside membership, didn’t get the required help. Twelve voted in opposition to it, with seven in favour and one abstaining.
“The new SCR rules are intended to promote opportunity for all clubs to aspire to greater success and bring the league’s financial system close to Uefa’s existing SCR rules, which operate at a threshold of 70%,” a Premier League assertion learn.
“The other key features of the league’s new system include transparent in-season monitoring and sanctions, protection against sporting underperformance, an ability to spend ahead of revenues, strengthened ability to invest off the pitch, and a reduction in complexity by focusing on football costs.
“The Sustainability and Systemic Resilience rules assess a membership’s brief, medium and long-term financial well being by three exams – Working Capital Test, Liquidity Test and Positive Equity Test.”
More to observe.