The EPL is about to bring in a new rule which will limit the spending capabilities of all the clubs, as per a report in The Times.
In recent seasons, several clubs have found a way to bypass the Financial Fair Play rule thereby pouring millions of pounds into the transfer market which is why as per the new rule, the EPL clubs will be restricted to spending 70% of their annual revenue on player wages, transfers and agents fees.
This rule will come into effect next season but for 2023 the percentage of spending will be 90% before gradually dropping to 80% in 2024 and then finally reaching 70% in 2025.
As per the report, if teams fail to comply with these restrictions, the EPL is also contemplating fines and points deductions as punishments.
NEW: Premier League clubs set for new restrictions on spending on transfers/wages/agents https://t.co/y6qv6jxh2H
— Martyn Ziegler (@martynziegler) August 30, 2022
Will this rule benefit all the EPL clubs equally?
At first glance, it might look like this new rule is going to provide a level playing field for all the clubs but in reality, the clubs that have rich owners will eventually benefit from this.
Firstly, the bigger sides will any day be spending more because they get all the best tv deals apart from their own sponsorships and deals.
Clubs like Manchester United, Man City and Liverpool are global brands so making 200-250 million pounds a year is nothing for these clubs.
On the other hand, teams like Palace, Forest and Watford have no major avenues to bump up their revenues so this new rule is of not much help to them.
Now, coming to the clubs that have big owners. These owners found a way to bypass the FFP rules so it’s only a matter of time before they overcome this new EPL rule by funnelling money through “sponsorships” to increase their revenue.