The Premier League is expected to keep profit and sustainability rules (PSR) for next season, rather than move to reworked financial controls.
PSR is designed to limit losses but the new system, which considers squad-cost ratio and anchoring, determines how much a club can spend based upon the money it generates.
PSR had limited the ability for many clubs to sign players, with Manchester United and Newcastle United among those to be restricted. The new rules would allow clubs greater flexibility for transfer spending.
Clubs met for the regular Premier League Stakeholders meeting on Thursday, but agreement could not be reached on all aspects and there was no vote on whether to introduce it. Some clubs were happy for it to come in this summer, but others believed changes or more consultation was necessary.
In addition, Manchester City have launched a fresh legal challenge against the regulations, specifically related to “associated party transactions.” APT rules are designed to ensure fair market value is applied to commercial deals with organisations closely aligned to club owners.
This would likely have to be resolved first. It is now more than likely that PSR will continue for one more season as time runs out to agree any changes, with the new method running in “shadow” alongside.
The situation is also complicated by the UK government’s new football governance bill. The detail of the legislation has not yet been finalised but will require football clubs to show they are behaving in a financially sustainable way.
While the Premier League intends to devise its own definition of sustainability, it must fall into line with this legislation under the control of the incoming independent football regulator.
Clubs in UEFA competitions already have to comply with a system similar to squad-cost ratio.
