Premier League Financial Changes – A Step In The Right Direction?

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The Premier League agreed some new financial regulations this week which will limit what clubs can spend on player wages from next season and not allow the clubs to make a loss of more than £105m over the next three seasons.

£105,000,000!

Can you imagine what would be said if Mr Tesco said to his board that their main aim over the next 3 years is to avoid loosing that much money? I don’t think he’d be in a job for much longer.

I get the feeling that the Premier League are closing the stable door after the horse has gone with this one. They’ve had plenty of warning that clubs are massively over-spending thanks to the likes of Portsmouth and Leeds, add to that the constant stream of clubs making losses and they seem to have been a bit short-sighted to leave it until now to impose some financial constraints. No doubt the clubs will be able to get around the wage restrictions by employing some people with very big brains and clever ideas.

Money Bag

However, at least the Premier League have stepped in and said that there are some problems in the game and they are going to try to solve them. Football clubs seem to be becoming billionaire’s play-things recently and as more and more big name players come to the Premier League the wages and financial risks will increase massively.

I think it would be a fair assumption that if the backers of Manchester City and Chelsea were to remove their funding the clubs would quickly enter financial difficulty. Perhaps this is what the Premier League officials have foreseen and want to try to protect the clubs’ future by limiting what they can spend. I’m a massive Leeds Rhinos fan and would much rather see the club playing in the Championship and be financially stable than have the club go out of existence because they’ve over spent on players wages.

Well done to the Premier League for taking these steps, but I’ll be interested to see what happens in three years time.

 

 

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