Summary of Premier League Cost Control Reforms

 
Below is a quick summary of my understanding of the Premier League’s (PL) cost control measures it will be adopting after the vote today:
 
1. Clubs can make £15 m loss over a three year rolling accounting period. This means that a £5m per season loss can be covered by owner loans.
 
2. Clubs can make a cumulative £35m loss over a three year rolling accounting period I.e. a total loss of £105m if:
  • owners guarantee the funding;
  • show financial forecasting projections to the PL; and 
  • (presumably) £90m of the loss is provided to the club as equity (shares).
3. The Soft Salary cap: Only a £4m increase in the wage bill for PL clubs (presumably for the life of the upcoming PL TV deal) will be permitted.  If a PL  club spends more than an additional £4m on wages from the previous season, the additional wage cost can only be funded by increased commercial revenues that the club has made during that season.
 
In the coming days, I will write in more detail on the above reforms and their consequences for the PL. At first glance, it is not yet clear when the regulations will come into force.

Recent Posts

Football’s Financial Crisis: Three Ideas to Help Lower League Clubs

By Daniel Geey and Jonny Madill EFL Chairman Rick Parry has explained that without serious intervention, lower league

Read More →

Concentrate on the Invisible: Supercharge Your Knowledge and Build Your Network

I recently ran a week long YouTube course on my experiences in breaking into the sports industry and forging a career.

Read More →

The Newcastle Takeover: The Rules on Spending Will Still Bite

First Published in the Mail on Sunday Should the Newcastle takeover happen, it’s important to understand the spending

Read More →

The Book

Done Deal

An Insider's Guide to Football Contracts, Multi-Million Pound Transfers and Premier League Big Business Insightful, enlightening and thought-provoking, leading Premier League lawyer Daniel Geey lifts the lid on the inner workings of modern football.

Whether it is a manager being sacked, the signing of a new star player, television rights negotiations, player misconduct or multi-million-pound club takeovers, lawyers remain at the heart of all football business dealings. Written by leading Premier League lawyer Daniel Geey, who has dealt with all these incidents first hand, this highly accessible book explores the issues – from pitch to boardroom – that shape the modern game and how these impact leagues, clubs, players and fans.

Buy Book