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Premier League eyes ABOLISHING points deductions and introducing ‘luxury tax’ with vote planned

The Premier League eyes ABOLISHING points deductions and instead introducing an NBA-style ‘luxury tax’ with a vote reportedly planned.

Premier League clubs are contemplating a significant policy alteration, wherein they would replace points deductions with a ‘luxury tax’ similar to the NBA’s system.

This decision stems from concerns that top players may be inclined to leave if their salaries are restricted.

The motivation behind this move is the perceived ineffectiveness of the existing financial fair play regulations.

Ongoing discussions are taking place, and a potential vote is expected to be held during the end-of-season meeting in June.

The proposed ‘luxury tax’ would impose financial penalties on clubs that exceed their spending limits, with the severity of the penalty increasing based on the extent of overspending.

The funds collected through this tax would either be redistributed to compliant clubs or allocated to an emergency fund for the EFL.

It has been reported that 17 out of the 20 clubs are leaning towards this change, and a minimum of 14 clubs need to agree for the rule change to be implemented.

This consideration comes in the wake of the punishments imposed on Everton and Nottingham Forest, as well as a relatively quiet January transfer window.

These events have prompted many officials to question the efficacy of the current regulations.

Both Everton and Nottingham Forest have been given points deductions this season, and Leicester City have also been charged by the Premier League with a breach of their Profit and Sustainabilty Rules despite not currently playing in the top flight.

Clubs are usually permitted maximum losses of £105million over a three-year assessment period but this has been reduced by £22million per season for any seasons within the period spent in the Championship.

Nottingham Forest have appealed their four-point deduction, and vented anger with the Premier League’s submission to the independent commission and claimed trust in the governing body had eroded due to their initial push for a stiffer sanction.

In a statement last month, Forest said they were “extremely dismayed by the tone and content of the Premier League’s submissions before the commission,” especially in light of the “exceptional cooperation” the club had given the investigation.

The commission which imposed the sanction noted Forest’s breach was “serious” and said in its conclusion: “The four points sanction is not to punish Forest so much as it is to be fair to the other clubs; to give the public confidence that when a club invests as Forest did to compete in the Premier League, it still needs to comply with the PSR threshold for losses.”

Everton saw their points deduction reduced from 10 to 6 points on appeal, and the club are still waiting to see if a potential second points deduction will come their way with the season nearing an end.

Points deductions could soon be a thing of the past as the Daily Mail report that the Premier League is ‘considering abolishing points deductions and introducing a ‘luxury tax”, something which club officials ‘deem the league’s Profit and Sustainability Rules (PSR) not fit for purpose’ after the spotlight was shone or certain clubs this season.

The report reads: ‘There are also grave fears are that, under its current guise, PSR will see the Premier League fall from its lucrative position as the world’s best league because it will no longer be able to afford the best players on the best salaries.

‘Radical reform has been discussed among the clubs and an entirely new system could be voted in at the end of the season meeting in June. As many as 17 of the 20 clubs are thought to be leaning towards significant change. Fourteen clubs need to be in agreement to get a rule change through.

‘Some feel that the eventual six-point penalty dished out to Everton and the four handed to Forest were draconian and not reflective of why PSR was brought in.’

They add that clubs are considering other options to control the incredible amounts of money involved in the English game’s top league.

‘A ‘luxury tax’ has been considered, where those clubs who overspend will have a financial punishment which would increase the more they splash the cash. But clubs can choose to press on regardless if they wish.

‘The monies collected, which could run into the tens of millions, would then be redistributed to those Premier League who complied with the rules. It has been discussed that some of the fines could even go into an ’emergency fund’ to assist EFL clubs in financial danger.

‘Currently, such a tax features in America’s Major League Baseball and National Basketball Association, and relates to the amount spent on the salaries of the playing squad.’

Meanwhile we still don’t know what will happen to Man City who were charged in February 2023 with over 100 breaches of the Premier League’s financial fair play regulations dating back to 2009.

The club could face a points deduction or even expulsion from the competition should they be found guilty, however, Man City have always denied any wrongdoing and vowed to fight their case, and we could still be waiting for some more years as to their punishment.

Ex-Everton CEO Keith Wyness said that the 52-page document detailing the findings and reasons for Nottingham Forest’s four-point deduction suggests that “expulsion” is a possibility for Man City if found guilty of their 115 charges.

Wyness told Football Insider: “For the first time, I’ve noticed the word expulsion cropping up in the report from Nottingham Forest’s hearing.

“City must be noticing that for the first time, as well.

“We don’t know yet, and they’ve got every right to plead the case, but expulsion does seem to be on the table given the severity of what’s supposed to have happened.

“We’re yet to see the evidence, though, and we need to get it going sooner rather than later.”

This is how fans reacted as the Premier League eyes ABOLISHING points deductions and introducing ‘luxury tax’ with a vote planned…

@Melbourne_MUFC2: So what happens to Everton and Forest? Do they have points reinstated?

@KeslerSZN: Odds on them bringing this in before city get the 115 charges?

@JamieBriody: Give us our points back then

@RedMarrow_: And this is how Man City escape all charges… A simple fine. The systems are already in place

@bullens288: In that case return the points deducted

@aloozftbl: Bending over for manchester city

@ThaBigSize: They’re looking for a soft landing for Man City. Fraudulent league!.

@carey_natty: of course they scrap point deductions before city get charged

@lxreilly1: So basically, If @Everton or @NFFC had denied the charges and the legal proceedings didn’t take place until sometime next year, similar to @ManCity, then they would not have been deducted points. This is just farcical now. Master’s position should now be untenable.

@SimonNo7: Looks like they are trying to find a way to not have to deal with 115 charges City.@premierleague the best league in the world my ar$e. Not bothered about integrity in the slightest (having said that they’ve already lost that with the state of @FA_PGMOL).

@KingCol78: Might as well get this European Super League up and running now then… The Premier League is a farce, if it’s not this it’s the glaring obvious support of VARs horrendous performance by doing absolutely nothing about it.

@way2pricey: Amazing isn’t it they’re doing this before Man City and Chelsea get dealt with 😂😂

@K1eranJones: If they want to do this then it needs to be for charges post implementation of the new rules. All charges PRIOR need to be dealt with by point deduction, I.e City / Chelsea can’t buy their way out of it and Everton / Forrest are dealt with fairly in comparison

@Smashi01: What a shambles.. time for it to be independent.. @premierleague

@jbrookes7: Just after Everton x2 & Forest x1 have received points deductions and just in time for Man City & Chelsea to avoid getting them. How stupid do you have to be to not see how corrupt the PL is…

@TimBolton1981: Would be the end of football for me. Klopp going and then just seeing City and Newcastle spending £500m a year and paying a £5m fine to do so would probably just about kill any enjoyment left.

@Maxi_1892: Right so state owned clubs with infinite money can you just pay more money to avoid being charged with spending too much money. Get me in the super league, what an absolute mess that would be.

@SmnLlyd5: These clubs have spent too much money. It’s not sustainable. They must now pay more money as punishment. Genius.

@juggy1993: Basically, the Premier League are worried they’ll have to start doing something to the big clubs and decide they can just line their own pockets with more cash then? So what happens with the likes of us, Forest, Everton etc?

@EFCMatt1: Richard Masters is shit house, how he’s still in a job is as inexplicable as the calculation he made up for the punishment @Everton received. He’s brought nothing but shame & corruption to the @premierleague

@Upper__Gwladys: So basically the rich clubs will be able to absorb the so called ‘luxury tax’ which will also allow the premier league to line it’s pockets further. What an absolute sham it all is.

@Im_RobM: If this comes in, then finally the Saudi’s can splash the cash 💰 #NUFC

@nffcalways1: You can see Forest and Everton having a field day in the courts with this info #nffc #EFC

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