The Times have revealed that all 20 Premier League clubs, including Tottenham Hotspur, could be about to face restrictions on future funds spent on wages and transfer fees.
The report reveals that UEFA’s new squad cost rule, which will limit clubs to spending 70 per cent of their annual revenue, will be in place from next year.
The Premier League are allegedly looking to implement a similar rule but they are expected to offer more leeway for clubs in terms of the percentage they would be allowed to spend.
It is explained that the income generated from player sales would also allow clubs to increase their total ceiling of money spent.
The report states that UEFA’s squad cost model will lead to fines and point deductions when restrictions are breached, with the sanctions being determined by the severity of the rule break.
The new Premier League rule could also include an agreement to hand out more funds to EFL clubs but as things stand, the move is yet to be given the green light.
An executive at a Premier League club told The Times: “It makes sense to have the same system operating in England as well as in Europe — but with a different percentage.”
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This new rule will benefit Tottenham as our wage-to-turnover ratio is modest compared to most of the other big clubs.
Clubs like Aston Villa and Everton, who pay high wages despite not having a similar level of revenue to the top clubs in the division, will be the worst hit.
This rule might also slow down Newcastle United’s growth as the Magpies owners will have to worry about more than just FFP restrictions.
However, the problem with the implementation of this rule (just as with FFP) will be that clubs could use loopholes to overstate their revenue – something that has proven to be very hard to prove in court.
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