Latest news with #ProfitabilityAndSustainability
Times
4 days ago
- Business
- Times
Premier League fails to close Chelsea PSR loophole
The Premier League has failed in its bid to prevent clubs selling assets to sister companies in order to comply with its Profitability and Sustainability Rules (PSR). A proposal to close the loophole that has allowed Chelsea to register a 'profit' from selling hotels, and their own women's team, to a sister company did not even go to a vote at the Premier League's annual meeting, which took place near Harrogate. Sources said it became clear that there was not enough support in the room for the proposal and so it was not put to a vote. It would have needed 14 of the 20 clubs to vote in favour to allow the rule change to be passed. Some clubs felt that to change the rules now would be 'closing the stable door after the horse had bolted', one club executive told The Times, and that as Chelsea had benefited from the loophole, others should be allowed to do the same. There was also concern that it would prevent clubs earning revenues from selling assets such as property to unrelated parties. The PSR will remain in place next season without significant changes. It had originally been envisaged to replace it with a new cost control system but the legal challenge by Manchester City against Associated Party Transaction rules — which will be heard by an arbitration tribunal in October — led clubs to decide in February to keep PSR for at least another year. It means limits will remain on the amount of money clubs can lose. The maximum loss is £105million over three seasons, but spending on infrastructure, youth and women's football is exempted. Manchester United, Newcastle United and Aston Villa are among the clubs that have cited PSR as a reason for being constrained in the transfer market. Chelsea sold their all-conquering women's team to a sister company for a stated £200million — though the value of the deal has yet to be approved by the Premier League — and two hotels for £70.5million. The deals have helped the club comply with PSR over the past two seasons. Uefa does not accept the sale of assets to sister companies as income and Chelsea is in talks with the European governing body over a financial settlement for breaching its financial rules, which limit losses a club can make, and the amount it can spend on players' wages, transfers and agents fees in relation to its revenue.
Times
29-05-2025
- Business
- Times
Newcastle want four new players — but do not need to make big sale
Big sale averted It is not widely known just how desperate the situation was at Newcastle United in January. The belief within the club is that without the sales of Miguel Almirón to Atlanta in the MLS and Lloyd Kelly to Juventus for a total of about £25million, one of the stars — an Alexander Isak, an Anthony Gordon or a Sandro Tonali — would have had to been sold this summer for below market value. The combined £72million for the sales of Yankuba Minteh and Elliot Anderson during a frantic May last year averted a ten-point penalty and was a step in the right direction towards resolving their issues with the Profitability and Sustainability Rules (PSR). There was still work to be done, however, to rectify a previous overspend and that meant getting an above market value for the 31-year-old Almirón and Kelly, who had been signed as a free transfer in the previous summer window. Those deals and a third transfer window without a costly signing have put Newcastle in a stronger financial place than they have been in recent seasons because of PSR. Not at the top table yet The reaction of Newcastle's senior figures in the directors' box on the final day of the season as the club squeezed into the Champions League — courtesy of Manchester United's victory over Aston Villa — told you just how important that was. There were worried faces during the 1-0 defeat at home to Everton, but laughs of absolute relief at full-time. The reaction in the box showed the financial significance, not to mention the prestige, that an aspiring club like Newcastle attribute to Champions League qualification. The financial benefits vary, but Villa picked up £45million thanks to their progress to the quarter-finals, and that was without factoring in gate receipts and commercial and marketing revenue. However, club sources are keen to stress that the added income does not mean reverting to the free-spending early days of Saudi Arabia's Public Investment Fund (PIF) ownership, when £62million went on Isak, £55million on Tonali and £45million on Gordon. Those days appear to be gone for the foreseeable future. Newcastle are trying to grow their revenue from the £320million for the 2023-24 season, which means that the process to catch the top clubs will take longer, as will being able to compete at the top end of the market. The beauty of youth Newcastle are aware they have an ageing squad and there is a desire to bring in younger players this summer. Eddie Howe admitted on Sunday that they would have to sign players with potential and bring them up to the standard that a club who have finished in the top five in two of the past three seasons require. The club are very much aware that Howe has produced wonders to win a first major domestic trophy in 70 years — the Carabao Cup — and qualify for the Champions League without any help in the transfer market for so long. That is set to change, with three or four players likely to arrive at St James' Park. Who and how Newcastle still want a right-sided central defender, a right-sided forward, a young goalkeeper and possibly an attacking midfielder. They have an interest in Liverpool's centre half Jarell Quansah, 22, the Aston Villa winger Jacob Ramsey, 24, the Burnley goalkeeper James Trafford, 22, and Espanyol's Joan García, 24, as well as the Coventry goalscorer Jack Rudoni, 23. Attracting those three outfield players and one of the goalkeepers would pretty much eat up Newcastle's entire transfer budget for this window, given budget constraints are still in place. It is highly unlikely that they will sign a finished article such as Marc Guéhi, a player they still like, because there are concerns over the size of the fee, not to mention competition from the likes of big-spending Chelsea and possibly Liverpool. Newcastle have the added complication of sporting director Paul Mitchell and chief executive Darren Eales both leaving next month. The Times understands that Mitchell will act in an advisory position and work through the details of any deals. It means that Howe will be very much back playing a leading role in transfers as the club prepare to invest in their first-team squad for the first time in four windows, but the Newcastle head coach, like those at boardroom level, knows they will have to be quick and smart in the window, with the financial might of PIF kept very much in tow once again.
Times
20-05-2025
- Business
- Times
Leicester City face points deduction after Premier League charges
Relegated Leicester City face the threat of a points deduction in the Championship after being hit with three Premier League charges. The charges follow the outcome of an arbitration tribunal which means even though Leicester have been successful in their bid to avoid action for breaching Profitability and Sustainability Rules (PSR) in the 2022-23 season, the Premier League has the power to charge them for last season when they were in the Championship. They have also been charged with failing to provide their annual accounts to the Premier League before the December 31 deadline and over an 'obligation to provide full, complete and prompt assistance to the Premier League'. The EFL has confirmed to The Times that any sporting sanction imposed by an independent commission
Reuters
20-05-2025
- Business
- Reuters
Premier League refers Leicester to independent commission over alleged rule breach
LONDON, May 20 (Reuters) - The Premier League on Tuesday said it had referred Leicester City to an independent commission for an alleged breach of spending rules in the 2023-24 season, though a tribunal ruled the club cannot face further action over a similar breach in the 2022-23 campaign. Leicester, who were playing in the second-tier Championship during the 2023-24 season, had allegedly breached the English Football League's Profitability and Sustainability rules, the Premier League said in a statement. The Premier League added that an Arbitration Tribunal had decided that it had jurisdiction to investigate the club's breaches of EFL rules. The EFL is responsible for administering the three tiers below the Premier League. "... the EFL validly transferred responsibility for its investigation to the Premier League in June 2024, when the club was promoted from the Championship," the league said in a statement. "The Premier League continues to have jurisdiction even though Leicester City will be relegated to the Championship at the end of this season." In a statement, Leicester said they intended "to engage cooperatively" after the Premier League's jurisdiction was established. Leicester were first referred to an independent commission for a PSR breach in March last year over their finances in the 2022-23 season. In September, Leicester won their appeal against the Premier League, with the club appealing on the basis that an independent commission ruling on the case did not have jurisdiction, which was upheld by an independent appeal board. The decision came on the grounds that Leicester's accounting period ended on June 30, 2023, when the club was no longer a member of the Premier League following their relegation to the second tier the previous month. Premier League clubs are only allowed to lose up to 105 million pounds ($140.37 million) over a three-season period under the PSR rules, and both Everton and Nottingham Forest were given points deductions. The appeals board concluded that the point of time at which Leicester allegedly exceeded the loss threshold could not have come before June 30, and any losses could, in part, result from their trading activities after they ceased to be a Premier League club. The outcome of that appeal was challenged by the Premier League, saying the decision was the result of a perverse interpretation of the law, but that challenge was dismissed by the tribunal. ($1 = 0.7480 pounds)
