Premier League Unveils New Financial Regulations

The Premier League has introduced new financial regulations which will see top-flight clubs facing lengthy transfer bans if they fail to adhere to the new proposals which include legislation surrounding the number of ‘home grown’ players in each squad.

Under the new rules which govern the make-up of the clubs’ squads, the Premier League Board has the power to punish clubs who fail to meet certain criteria.

From next season, each club will, at the end of every transfer window, have to name a squad of up to 25 players, at least eight of which will have to be ‘home grown’ – registered for at least three seasons at an English or Welsh club between the ages of 16 and 21.

Squads can be boosted beyond the 25 limit but only by players under the age of 21.

The Premier League’s new financial rules are similar to UEFA’s current licensing guidelines, but differ in that they are compulsory to clubs and punishment takes the form of sanctions as opposed to outright exclusion from competition.

Each club will have to provide its annual accounts to the Premier League by 1st March every year, and show that it does not have outstanding tax debts, or debts to other clubs.

Clubs will also have to prove they can fulfil all fixtures and contractual obligations, and meet all payments due during a season.

As well as denying clubs the right to acquire new players, the Premier League can also prevent them improving contracts with current players.

Commented Premier League chief executive Richard Scudamore: ‘The whole purpose of this is to protect the viability and sustainability of the clubs.

‘It is absolutely essential that these clubs are run as viable, going concerns. We would far rather intervene than risk a club going into administration.’

The new rules do stop short of UEFA president Michel Platini’s ‘Financial Fair Play’ proposals, which are due to be approved by UEFA’s Executive Committee this week.

These seek to limit clubs to spend only what they earn from football-related income such as ticket sales and television deals and punishments could include the banning of clubs from European competition.

However, the new Premier League rules do not prevent clubs from amassing large amounts of debt, serviced by wealthy owners.

In announcing the new regulations, Scudamore defended the Premier League clubs’ financial health despite the financial problems many clubs are facing

‘Contrary to what many people think, the clubs from a financial point of view are well run. They all have qualified accountants running them.

‘These clubs are extremely well regulated both in company law and certainly when you add our criteria and UEFA licensing on top.’
 
Whilst Scudamore admitted that the new ‘home grown’ ruling will not prevent clubs from recruiting young players from abroad, it will work towards reducing squad sizes and allow greater opportunities for young players to advance.

‘The clubs will always go abroad and look. The important thing is are they looked after and is it done properly and I don’t think we will stop that happening any more or any less because of this rule.

‘I think it will reduce squad sizes, and stop the warehousing of players, if that is really what is going on.’