A SHOCK new report has claimed that the Premier League could scrap point deductions and introduce an American sport style “luxury tax” instead.
Everton were hit with a whopping ten-point penalty – reduced to six on appeal – for breaching Prem Profitability and Sustainability Rules.
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Nottingham Forest were then stung with a four-point deduction for breaking PSR rules.
That means clubs were wary over what they spent during the January transfer window, making it one of the quietest ones on record.
That has allegedly left “many officials to deem the league’s Profit and Sustainability Rules (PSR) not fit for purpose” and sparked huge concern.
The Daily Mail says that there are “grave fears” the Premier League will “fall from its lucrative position as the world’s best league” due to “no longer be able to afford the best players on the best salaries”.
They go on to report that clubs have discussed “radical reform” and a completely new system could be voted in at June’s meeting.
Up to 17 of the 20 top-flight teams are set to back the change with just 14 needing to be in agreement to get the rules switched.
This report says that the punishments to Everton and Forest “were draconian and not reflective of why PSR was brought in” and clubs should be able to “have a go” if they have the cash to do so without punishment that could result in relegation.
That is where the “luxury tax” has been reportedly considered.
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That would mean that teams overspending would have a financial punishment instead of points that would increase the more they spend.
The money accumulated from that would be redistributed to those Prem clubs staying within the rules, while it was also mentioned that some of the cash may go to an “emergency fund” for EFL clubs in financial difficulties.
America’s Major League Baseball and NBA currently have the tax, which relates to the amount spent on the salaries of their squad.
However, both the NFL and National Hockey League have “hard” salary caps that teams cannot exceed.
There is a new Uefa rule that is also “viewed favourably” by some top-flight teams while an “anchoring” has also been talked about.
That would be set on the amount a club can spend being directly related to the wage bill spent by the bottom club.
For example, if Sheffield United’s wage bill is £50m this term and they end up bottom, then every club would have a set multiple of that figure to spend for the following season.
And if anyone breaks that cap, then they would pay the fine.
This update also says that “there are other financial points up for debate at the end of season meeting” with a “growing number” wanting changes to come in so that only spending on players and coaching staff is considered on the three-year reporting period.
