Premier League clubs set for financial control discussions

Proposed spending controls in the Premier League will be discussed at a meeting next week.

The 20 clubs have been split into two groups of 10 on a geographical basis, with the southern group to meet on Monday and the northern group on Wednesday.

The majority of clubs are in favour of some kind of cost control measure - the sticking points are likely to be which measure is adopted and what the sanctions will be for breaking the rules.

Ideas include adopting UEFA's Financial Fair Play system where clubs must break even, or clubs only being allowed to spend a maximum percentage of their annual income on player costs - for example 70%, the system operated by the European elite club grouping G14 a decade ago.

Another proposal is limiting increases in spending on player wages to 10% a year, as suggested by Sunderland owner Ellis Short.

Perhaps the option most likely to win universal approval is clubs having to be able to guarantee they can operate for several years in the future rather than just one.

Salaries

Under the guaranteed liability plan, if clubs have players on five-year contracts, as most do, they would have to be able to prove they can guarantee those funds for the length of those contracts.

In the case of Portsmouth, the club twice went into administration when some of their biggest costs included paying the salaries of high-earning players who were under long-term contracts but whom the club could not afford.

The clubs most opposed to cost control measures are Manchester City, Chelsea and Fulham but even they might be inclined to accept a system to guarantee financial liabilities.

The sanctions for breaking the rules are unlikely to be as drastic as UEFA's system which threatens to exclude clubs from European competition if they do not come close to breaking even.In the Premier League, a transfer ban or fine is much more likely to be agreed to punish transgressions.

Source: SkySports