Premier League news

FFP flouters face points deduction

February 7, 2013
By ESPN staff

Premier League chief executive Richard Scudamore has insisted that any club that in breach of new spending controls is likely to face a points deduction.

At a Premier League chairmen's meeting on Thursday, 20 chairmen voted by 13 to six - with one abstention - to implement two significant controls to the way their clubs spend money.

Firstly, they committed to cutting players' wage bills from next season, while also agreeing to restrict the amount of losses clubs can make to £105 million over three years.

Clubs whose total wage bill is more than £52m will only be allowed to increase their wages by £4m per season for the next three years, though that cap does not cover extra money coming in from increases in commercial or matchday income.

Any club breaching the rules will face tough sanctions and Scudamore told reporters that he would be pushing for points deduction.

"As all things in our rulebook you will subject to a disciplinary commission," he said. "The clubs understand that if people break the £105m we will looking for the top-end ultimate sanction range - points deduction.

"Normally we stay silent on sanctions as the commission has a free range, but clearly if there is a material breach of that rule we will be asking the commission to consider top-end sanctions."

Scudamore also confirmed there would be an "absolute prohibition" on losses of more than £105m over the next three years - only seen so far by Manchester City, Chelsea and Liverpool according to the latest accounts - with the first sanctions possible in 2016.

"A new owner can still invest a decent amount of money to improve their club but they are not going to be throwing hundreds and hundreds of millions [of pounds] in a very short period of time," he added.

"While it has worked for a couple of clubs in the last 10 years, if that's going to be done in the future it's going to have to be over a slightly longer term without the huge losses being made.

"I think at £105m you can still build a very decent club with substantial owner funding but you have to do it over time, not in a season."