Premier League Moving Closer to Financial Controls

All Premier League chairmen have agreed in principle for clubs to introduce spending controls despite some opposition at a meeting on Tuesday.

The exact details of the spending controls has yet to be agreed – specifically around how much wealthy owners can put into the club to cover losses, sources close to the process have disclosed.

The break-even model will be based on UEFA’s Financial Fair Play system and would require clubs to move towards break even, while the second would place an annual limit on the how much salaries could increase.

The club chairmen have now asked PL executives to bring back detailed plans on the spending controls for the next meeting on February 6, and on proposals to cap wage rises for players in the short term.

The Premier League is set for a big increase in television revenues from next season when BSkyB and BT will pay a billion pounds per season for domestic TV rights, in a new three-year deal worth 70 percent more than the current one.

Sales of overseas rights are expected to bring in up to two billion pounds over the next three years.

Wages account for around 70 percent of revenues at Premier League clubs, leaving very little profit for many of them.

It is understood Manchester City, Fulham and Aston Villa remained opposed to any controls but approval by only 14 of the 20 clubs is needed for the moves to go through.

West Ham co-owner David Gold told Sky Sports News: “People are realising the importance of coming to a consensus and we’re moving ever closer to it.

“It’s important we bring in governance to ensure the Premier League in future never has to experience what happened to us when Portsmouth went into administration.”