Premier League club agree spending controls
Premier League clubs have voted to introduce new financial regulations that could see points deductions for teams found to have breached the spending controls, the BBC has reported.
Clubs will not be allowed to post a financial loss of more than £105m over the next three seasons, and must limit their total wage bill from next season, the BBC adds. Spending on football investment - in stadia or youth academies, for example - will be exempt from the regulations, however.
Inspired by UEFA’s Financial Fair Play rules, the league clubs have agreed to a similar system - although one that allows for a much greater deficit than the £38m specified by the European governing body. However, Premier League clubs had a total loss of £361m for the 2010-11 season, and sanctions would not come into effect until 2016.
A two-thirds majority of the 20 current Premier League clubs was required to pass the legislation and the vote was razor thin, with Reading abstaining to make the required number 13 out of 20 - and that is how the vote went.
Fulham, West Bromwich Albion, Manchester City, Aston Villa, Swansea City and Southampton are all understood to have voted against the proposal while Chelsea, who had previously been against the idea, switched sides, thus tilting the balance.
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