PSR Era Set To Continue As Premier League Clubs Reject Reforms

‎The Premier League’s push for new financial governance has once again stalled after the latest quarterly shareholders’ meeting ended without agreement.

‎For the past 18 months, league executives have been trying to introduce two fresh mechanisms to control spending, but clubs remain hesitant to approve them.

‎As a result, the existing Profitability and Sustainability Rules (PSR) are set to remain in place, even though several teams have already been penalized under the system.

‎There was more discussion ovler possible rule changes at a meeting in central London on Tuesday, but there is, as of yet, no time frame for putting them to a vote, and the chances that anything will be adopted before next season are receding.

‎Sources indicate that Tuesday’s meeting concentrated on tackling concerns raised by individual clubs, with viewpoints frequently diverging based on each club’s standing in the competition.

‎One of the two proposals, called the squad-cost ratio, would cap wage expenditures at 85% of revenue.

‎Nine of the league’s 20 clubs are already committed to such a system as a result of qualifying for Europe and are understood to value the flexibility PSR provides domestically.

‎The second proposal, called anchoring, would cap each club’s spending at a multiple of the revenue earned by the league’s bottom-placed team.

‎The idea has faced strong opposition, with Manchester United and Manchester City previously voting against it. Supporters of the plan argue that anchoring is essential to preserving the Premier League’s competitive balance.

‎They believe this balance is one of the competition’s biggest attractions for fans both domestically and internationally.

‎Another discussion regarding the new rules centred on the possible impact of the incoming independent football regulator.

‎Alongside the squad-cost ratio and anchoring, shareholders discussed potential policies on sustainability.

‎They also considered the regulator’s expected requirement for clubs to maintain a cash reserve to mitigate financial emergencies.