Man City and Chelsea reality clear as Premier League get FFP points deduction plans response

The Premier League is reportedly preparing to ditch its current punishment structure for clubs that breach financial rules. Having gone from no FFP/PSR (profitability and sustainability regulations) sanctions in history, two clubs have already been docked points, with at least one other in the pipeline.

In November, Everton became the first side to be punished for breaching PSRs,before Nottingham Forest followed earlier this year. The Toffees could have another set taken off them before the season is over as well.

With Manchester City working amid clouds of 115 charges hanging over them and Chelsea under investigation into alleged misdeeds under Roman Abramovich, the landscape has been radically changed in a short period of time. There is drama over appeals, times, priorities, logistics, and legality in Leicester City's case.

With this in mind,it has been revealed by the Daily Mail that a so-called 'luxury tax' could be brought in to replace the current system in what is described as a 'radical reform.' Clubs are set to vote on implementing the huge shift later this year, having already discussed it.

The tax is common in American sports and is effectively a large fine paid back to other teams across the league when breaches have been made.Business of sport football writer Dave Powell has explained models used in other leagues, saying, «the idea of this is to not make it an attractive proposition to put money in the pockets of rivals directly.

»In the MLB, teams are taxed 17.5% for what they are over for year one, 30% for year two, 40% for year three and 50% for four or more years." He adds: «There would be some challenges to such a measure in football.

Premier League 'luxury tax' explained as Arsenal, Chelsea and Tottenham