What new Premier League financial rules would mean for Arsenal, Chelsea, and Tottenham Hotspur

At Wednesday’s Premier League shareholders meeting agreement was reached over what financial controls in English football’s top tier will be moving forward.

From 2011 until now, the Premier League has operated with profit and sustainability rules (PSR), regulation which allows £105m of losses over a three-year period, with allowable deductions for such things as investment in infrastructure, the women’s team, the academy, and community work.

But that £105m figure has remained static despite the rising costs of running a football club, from wages, to transfer fees, to administrative expenses.

The past year has seen PSR come into sharp focus, with Everton landed with two separate charges for breaches of PSR, for 2021/22 and 2022/23, with both carrying a points deduction penalty. That deduction had been 10 points for the first charge, but that was reduced to six upon appeal, with two added for the second charge to make eight points deducted in total.

Nottingham Forest were deducted four points for a 2022/23 breach, while Leicester City, should they be successful in earning promotion back to the top flight next season, will begin the season with some kind of deduction after they were found to be in breach for the 2022/23 financial year, a year where they were members of the Premier League.

The chaos of recent months, and a season that has multiple teams with asterisks against their names, has not been a good look for the Premier League and reform has been at the top of the agenda at recent shareholder meetings.

This week’s monthly meeting saw headway made, however, with the Premier League set to adopt a model similar to UEFA’s squad cost ratio rules that are currently used.

Premier League drop clearest Man City points deduction