Premier League clubs will convene on Thursday to deliberate on the potential abandonment of current profit and sustainability regulations in favour of adopting a financial framework similar to UEFA’s.
Presently, clubs are required to limit losses to £105 million over a three-year period.
However, executives anticipate a gradual transition to new regulations, with plans for a soft launch next season and full implementation by the 2025–26 campaign.
It is widely believed that a significant majority of teams support the proposal to align with UEFA’s financial structure, with up to 19 clubs reportedly endorsing the transition.
UEFA announced plans two years ago to replace the previous financial fair play system with a squad cost ratio approach, which correlates a club’s spending on areas like wages, transfer fees, and settlements with its turnover.
Beginning next season, such expenditures must not exceed 90% of turnover, decreasing to 70% from 2025–26. The Premier League is expected to adopt a similar cap, with a suggested figure of 85%.
Richard Masters, the Premier League’s chief executive, recently stated that clubs were being consulted on this potential shift.
In a previous statement to the Culture, Media, and Sport Select Committee, he highlighted that over a third of the league’s clubs participate in continental competitions annually and must adhere to UEFA’s regulations.
“Over time we have historically aligned with Uefa, because seven or eight of our clubs play in European competition,” he said. “We need to consider whether that is an appropriate move for us, how we do that and when.”
Both Everton and Nottingham Forest have been found in breach of league regulations, resulting in penalties for each club. Initially, Everton faced a deduction of 10 points, later reduced to six following a successful appeal.
Nottingham Forest’s hearing is set to begin next week, focusing on the £47.5m sale of Brennan Johnson to Tottenham outside the 2022–23 financial year.
Despite declining lower bids from Brentford earlier in the transfer window, Forest opted for maximum profit.
A verdict is expected in early April, with Forest likely to appeal any sanction. Everton may face further deductions after being referred to an independent disciplinary commission for a second charge related to the period up to 2022–23.
Top-flight clubs anticipate a transitional phase next season with the introduction of new rules.
There is optimism that such a system will allow for real-time financial monitoring and provide more flexibility for in-season penalties, reducing the likelihood of prolonged disputes. UEFA outlines predefined financial penalties and sporting measures for breaches of regulations.