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Sunday, June 16, 2024

Good news for Newcastle as Premier League discusses FFP changes

Newcastle were one of several Premier League teams that were hampered by Financial Fair Play rules in January but there could be changes on the way. 

Representatives from Premier League clubs met on Tuesday to discuss changes to the English top flight’s FFP and Profit and Sustainability Rules regarding the current £105million limit as well as aligning with UEFA’s squad cost ratio system.

The UEFA system limits clubs to spending 70 per cent of their revenue on squad costs – transfers, wages and agents’s fees. For example, if a clubs turnover is £900m per year, they would be able to spend 70 per cent of that – £630m a year on player costs.

Having these aligned would make life much easier for the big clubs in the Premier League but what would it do for the rest of the division?

The £105m rule stops the teams in the top half of the league going crazy with their transfers and means they will have to watch their spending, such as the January window just gone.

If the rules change it will be great for the likes of Newcastle and Chelsea but would it affect the competitiveness of the Premier League?

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