Premier League clubs are considering binning points deductions and introducing a luxury tax, according to the Daily Mail.
A reform has been discussed amongst Premier League clubs and a revamped system could be introduced as early as next season, with the league’s current Profit and Sustainability Rules (PSR) seemingly not fit for purpose.
Hefty points deduction for Everton and Nottingham Forest coupled with an unusually quiet January transfer window, with clubs afraid to overspend in order to avoid sanction, has forced Premier League clubs to re-think the current model in place.
Embed from Getty ImagesThere is also concern that the product of the league could be damaged as clubs will struggle to afford the best salaries for the best players in the world, hence limiting the amount of world class talent coming into the league. At the moment, 17 of the 20 current Premier League clubs are said to be in favour of removing points deductions as a form of punishment, with 14 needing to be in agreement for a rule change to be put in place.
The idea of a luxury tax, which is utilised effectively in America’s Major League Baseball (MLB) and National Basketball Association (NBA), is seen as a viable punishment to replace the current points deductions being imposed by PSR.
Embed from Getty ImagesTeams who overspend will face financial penalties that will increase the more they spend. However, if a club wishes to keep spending, they can do so, but the amount of ‘luxury tax’ they will have to pay will increase.
The monies collected would then be redistributed to the Premier League clubs who have complied with the spending rules. Alternatively, it has been discussed that fines could be used to assist the EFL if clubs fall into financial difficulties.
