June 12 – The Premier League is potentially facing legal action from one of its club owners over its profit and sustainability rules.
Aston Villa’s Nassef Sawiris said the financial restrictions “do not make sense”, and that regulations that say a club can lose no more than £105 million over a three-year period are having a detrimental impact on the game.
Villa have qualified for next season’s Champions League after finishing fourth in the Premier League but are still having to ensure they don’t breach financial regulations by selling players with a reported deal agreed to sell star midfielder Douglas Luiz to Juventus.
In an interview with the Financial Times, Sawiris said: “Some of the rules have actually resulted in cementing the status quo more than creating upward mobility and fluidity in the sport.
“The rules do not make sense and are not good for football.”
Villa had proposed a motion at the Premier League’s board meeting last week to increase the threshold for allowed losses to £135 million but only one other club supported the proposal.
Sawiris said managing a Premier League club has become more “about creating paper profits, not real profits. It becomes a financial game, not a sporting game.”
The Premier League did announce last Thursday that it will trial two new spending cap systems starting next season.
The first system, known as the ‘Squad Cost Rules’, will restrict clubs in the English top flight to spending no more than 85% of their football revenue and net profit or loss from player sales on player expenses.
The second system, called ‘Top to Bottom Anchoring’, will limit spending to a multiple of the lowest projected prize money and TV rights revenue that any team is expected to earn.
The two forms of spending will aim to enhance and maintain financial sustainability and competitive balance within the Premier League, as well as to encourage ambition among clubs, according to the league.
However, the…
Source link : https://www.insideworldfootball.com/2024/06/12/aston-villa-owner-naseef-sawiris-threatens-premier-league-legal-action-nonsensical-financial-rules/
Author : Paul Nicholson
Publish date : 2024-06-12 11:45:06
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