Premier League plan to replace point deduction policy with NBA style 'Luxury tax' system

Published at :April 4, 2024 at 10:46 PM

Modified at :April 4, 2024 at 10:46 PM

The rule will fine clubs instead of deducting their points

According to Mail Sport, the Premier League are thinking about doing away with point deductions and enacting a “luxury tax.”

The Profit and Sustainability Rules (PSR) of the league have been deemed unsuitable by numerous officials due to the severe point deductions imposed on Everton and Nottingham Forest, as well as the lack of activity during the January transfer window as clubs were afraid to overspend and face penalties.Serious concerns also exist that, in its current state, PSR will cause the Premier League to lose its lucrative standing as the greatest league in the world since it will no longer be able to pay the top players the highest fees.

The clubs have been discussing radical reform, and at the end-of-season meeting in June, a completely new structure might be voted in. It is believed that up to 17 out of the 20 clubs are on the verge of making major changes. A rule change can only be implemented with the support of fourteen clubs.

There are others who believe that the six points that Everton ultimately received and the four that Forest received were harsh and unjustified for the introduction of PSR.

They think clubs shouldn’t be punished with a consequence that may force them into the Championship if they want to ‘have a go’ and have the funds to do so.

A “luxury tax” has been proposed, in which clubs that indulge in excessive spending would face financial penalties that would rise in proportion to their expenditures. However, clubs are free to continue in any case they so desire.

The Premier League players who followed the regulations would then get a share of the money, which might total in the tens of millions. A ’emergency fund’ to support financially vulnerable EFL clubs has been proposed as a possible use for part of the fines.These days, the National Basketball Association (NBA) and Major League Baseball in America have taxes based on how much is paid for the players’ salaries.

The National Hockey League and the NFL, America’s other two major sports leagues, have “hard” salary limitations that clubs are not permitted to go over.Premier League officials are insistent that the idea would still have an element of “sporting sanction” and that it will be primarily centred on offering greater flexibility and a buffer zone, even though some clubs prefer the tax to completely remove the danger of points deductions.Some people also support UEFA’s new regulation, which caps expenditure on player and coach salaries, transfers, and agency charges at 70% of club income.

For more updates, follow Khel Now on Facebook, Twitter, and Instagram; download the Khel Now Android App or IOS App and join our community on Telegram.

Premier League plan to replace point deduction policy with NBA style 'Luxury tax' system

The rule will fine clubs instead of deducting their points

Trending World Football Articles: