The Premier League’s controversial profit and sustainability rules (PSR) system has been given a one-year stay of execution as clubs are not ready for the new model of financial curbs.
Manchester United, Aston Villa and Newcastle United have previously led complaints over their inability to sign key players under existing limits of £105 million losses over three years.
The system has also drawn heavy criticism from Everton and Nottingham Forest, who faced points deductions last season for overspending during a financial cycle.
However, moves to replace the system with squad cost controls, which permit spending to a percentage of revenue and player sales, will now only be introduced in “shadow” form from June.
The 20 shareholder clubs meeting held in central London on Thursday agreed PSR would remain in place for a maximum of one more season. Executives at the meeting also agreed to press ahead with the long-awaited introduction of semi-automated offsides in the league so long as there are no hiccups arising from its trial in the FA Cup fifth round.
The biggest talking point among clubs, however, will be delays in replacing PSR, which was initially pencilled in to be scrapped in June. There was no immediate suggestion of any dissent at the meeting to the new plan. Villa owner Nassef Sawiris has been among the fiercest critics of the current system in recent seasons, saying: “The rules do not make sense and are not good for football.”
The delay also comes after Manchester United revealed that they are at risk of failing to comply with PSR in a letter to fan groups, explaining ticket prices could rise next season in a bid to bring down their “significant losses”.
A number of factors – including the unresolved legal dispute with Manchester City around APTs and the incoming regulator – were listed as potential factors in the new system not being fully introduced this summer.
As well as battling with City, there have also been legal representations from the Professional Footballers’ Association over concerns around a potential “hard cap” on spending under the new rules.
Squad cost rules (SCR) and top to bottom anchoring rules (TBA) will both operate in shadow and will be unenforceable for next season. Teams will eventually be allowed to spend no more than 85 per cent of their total revenues on squads under the new system. Uefa’s system is marginally more restrictive.
