Premier League clubs reject Aston Villa and Crystal Palace PSR proposals to vote in new financial system

Premier League clubs have rejected Aston Villa and Crystal Palace’s respective proposals to change the league’s Profit and Sustainability Rules (PSR) limits.

Current PSR limits allow all Premier League clubs to accumulate a maximum loss of £105million over a three-year period.

Both proposals put forward different suggestions as to how to alter the current PSR limit, with Palace’s solely focusing on increasing the flexibility of clubs participating in Europe.

However, at the leagues’ Annual General Meeting today (6 June), the clubs voted to reject the proposals, instead opting to trial an alternative League-wide financial system from next season onward, as was initially planned.

The new system, which is explained in further detail here, will see the existing PSR remaining in place, but with a trial taking place for new Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA) to shadow PSR.

The league stated: “This will enable the League and clubs to fully evaluate the system, including the operation of UEFA’s equivalent new financial regulations, and to complete its consultation with all relevant stakeholders.

Palace’s proposal relates to UEFA coefficient payments, which provides all clubs participating in UEFA competition with a payment based upon their previous performances in the last 10 years in such competitions. However, this subsequently hinders newly-qualified clubs, with teams such as Newcastle only earning €4.5m, compared to Manchester City’s €33m, for instance.

Palace’s argument is that all Premier League clubs participating in Europe should be able to add the difference between their coefficient payments and the top clubs’ payment to their own PSR spending limit, thus allowing them to effectively compete in Europe, without breaching financial regulations.

Villa’s proposal was more simple, with the league’s fourth place side requesting that the PSR limit should be changed from the current £105m cap to £135m, effectively enabling teams to spend a further £10m each year, on average.

Villa’s rationale was that, due to the £105m limit being set a decade ago, it is outdated and not adequately adjusted to inflation.

However, as the vote shows, the majority of Premier League clubs disagreed.

Travis Levison | Get Football

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