Premier League spending controls - what does it all mean?

Premier League spending controls - what does it all mean?

Premier League spending controls - what does it all mean?

First published in Premier League
Last updated

What do the new spending controls for Premier League clubs actually mean?

Q: Will the Premier League now have a salary cap?
A: Not in the strict sense of the word. Clubs whose total wage bill is more than £52million will only be allowed to increase their wages by £4million per season for the next three years.

Q: So the likes of Manchester United are limited to a £4million a year total wage increase?
A: Not quite - the restriction only applies to the income from TV money. If clubs boost their income through extra sponsorship deals or matchday income, they can spend that on wages too.

Q: What do the new financial fair play (FFP) rules mean and which clubs will it effect?
A: These will put a ceiling on the amount of losses each club can make to £105million over three years, but these have to guaranteed by owners.

Q: How does that compare to UEFA's FFP rules?
A: UEFA's are more stringent - losses over three years are limited to 45million euros (£39million).

Q: Which clubs fall foul of the £105million losses over three years figure?
A: On the most recent figures, Manchester City, Chelsea, Liverpool and Aston Villa have all reported higher losses than £105million, but the trend is towards cutting losses and this will not apply until the three years before 2016.

Q: If a club's official annual figures show losses of £110million, will they automatically be in breach of the regulations?
A: Not necessarily - spending on academies, facilities and stadiums can be offset.

Q: What will happen if a club is found guilty of breaching the salary and spending regulations?
A: They are likely to have a points deduction.

Q: Has the final decision now been taken by the Premier League?
A: The principle of the regulations, and the figures involved, have been agreed. They do still need to be ratified at a meeting in April however.

Q: Is that just a rubber-stamping exercise?
A: It will probably go through - but the vote could not have been closer with only 13 of the 19 votes cast in favour, just scraping past the necessary two-thirds majority.

Q: Why did some clubs viewed as being well-run and not making losses vote against the regulations?
A: Some of them believe the Premier League should be a free market, are proud of the way they have run their clubs on a sustainable basis and resent being told what to do.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree