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From more than 800 million last January to just over 100 million this winter transfer period. Spending in the Premier League has plummeted year on year. Which begs the question: has the world’s richest league hit a ceiling?
This vague hope is based on a ‘Profitability and Sustainability’ (PSR) rule introduced in the Premier League in 2013. In very simplified terms, this means that teams cannot make more than £105 million in operating losses over a three-year period. A rule that recently caused problems at Everton and Nottingham Forest. And proceedings are also underway against series champions ManCity for alleged violations of the PSR.
Will the financial rule come into effect slowly?
More than ten years after its introduction, voices can now be heard in England who attribute the current reluctance in the transfer market to this rule. But that falls short. If you look at the winter editions of the Premier League in recent years, there have always been fluctuations. However, in the 2011/2012 season, expenditure was last at a comparable low level as this winter (see box).
The fluctuations from one year to the next are also related to the continental championships in Asia and Africa. Because these take place in the middle of the season, teams are less willing to let players leave in January, and lower transfer spend is the logical consequence.
However, financial regulations in England still restrict the clubs’ actions. Meanwhile, even wealthy, traditional clubs such as Arsenal, Man Utd and Liverpool must first generate income to attract new players. There are apparently also limits to the outrageous behavior of investors such as those of Newcastle or Chelsea.
The two teams that have been able to spend endless amounts of money on new players over the past year and a half are suddenly showing restraint in January. Because they are satisfied with their season? Hardly likely. Both teams want to attack the top, but are languishing in the middle of the table. However, the balance sheet is unlikely to allow for further new additions without generating revenue.
Will the Premier League change the rule soon?
So much for the positive. Critics criticize the PSR for maintaining the status quo: the higher a team is in the rankings, the more bonus it gets from the TV contract and the more it can spend in return.
The billing period is currently causing problems, as the example of Nottingham Forest shows. The club, which was promoted a year and a half ago, invested heavily last season to stay in the competition. In the summer they were therefore forced to generate income.
Nottingham therefore sold Brennan Johnson to Tottenham for around 50 million. However, because the deal had not yet been completed at the end of June, it no longer fell within the relevant reporting period. The result: Nottingham are threatened with sanctions for the current season for breaching England’s Financial Fair Play last summer.
There are rumors going around that the Premier League wants to change the rules from the summer of 2024. A turnover-to-wages ratio will be introduced – similar to the UEFA system and in Spain. We can only hope that the positive side effects of the current system are not lost as a result. However, changing the rules will not bring much benefit to Everton and Nottingham Forest.
|
team
|
SP
|
T.D
|
PT
|
||
|---|---|---|---|---|---|
|
1
|
 Liverpool F.C
|
22
|
32
|
51
|
|
|
2
|
 Manchester city
|
21
|
27
|
46
|
|
|
3
|
 Arsenal F.C
|
22
|
23
|
46
|
|
|
4
|
 Tottenham Hotspur
|
22
|
14
|
43
|
|
|
5
|
 Aston Villa
|
22
|
14
|
43
|
|
|
6
|
 West Ham United
|
22
|
3
|
36
|
|
|
7
|
 Manchester United
|
22
|
-4
|
35
|
|
|
8th
|
 Newcastle United
|
22
|
11
|
32
|
|
|
9
|
 Brighton & Hove Albion
|
22
|
1
|
32
|
|
|
10
|
 Chelsea F.C
|
22
|
1
|
31
|
|
|
11
|
 Wolverhampton Wanderers
|
22
|
-2
|
29
|
|
|
12
|
 AFC Bournemouth
|
21
|
-11
|
26
|
|
|
13
|
 Fulham F.C
|
22
|
-8th
|
25
|
|
|
14
|
 Crystal Palace
|
22
|
-11
|
24
|
|
|
15
|
 Brentford FC
|
21
|
-5
|
22
|
|
|
16
|
 Nottingham forest
|
22
|
-13
|
20
|
|
|
17
|
 Luton town
|
21
|
-10
|
19
|
|
|
18
|
 Everton F.C
|
22
|
-4
|
18
|
|
|
19
|
 Burnley F.C
|
22
|
-23
|
12
|
|
|
20
|
 Sheffield United FC
|
22
|
-35
|
10
|
Source : Blick
I’m Emma Jack, a news website author at 24 News Reporters. I have been in the industry for over five years and it has been an incredible journey so far. I specialize in sports reporting and am highly knowledgeable about the latest trends and developments in this field.
