A vote on Thursday saw Premier League clubs unanimously decide to bring in new regulations for financial fair play, scrapping the current profitability and sustainability rules (PSR).
New rules will come in from the start of the 2025/26 season and see clubs’ spending limited to a percentage of annual turnover on their first team and coaching staff’s wage bill, plus amortised costs of transfers and agents’ fees.
There will be a different percentage to work to for clubs in European competition and those not involved.
Clubs competing in Europe will be able to spend 70 per cent of their turnover and the other clubs can spent 85 per cent.
Points deductions are still possibilities for clubs falling foul of the new regulations, just as they have been under the current PSR rules.
Finer details are set to be discussed at the Premier League AGM in June, with the possibility that there will be financial penalties for minor infringements rather than points deductions.
Everton and Nottingham Forest have both been given point-deduction penalties this season for being in breach of PSR regulations.
The Toffees suffered their second punishment of the season this week, with two points deducted.
A Premier League statement read: ‘An independent Commission has given an immediate two-point deduction to Everton FC for a breach of the Premier League’s Profitability and Sustainability Rules (PSRs) for the period ending Season 2022/23.
‘Over a three-day hearing last month, the independent Commission heard evidence and arguments from the club in respect of a range of potential mitigating factors for its admitted breach of £16.6million, including the impact of its two successive PSR charges. Having done so, the Commission determined the appropriate sanction to be a two-point deduction, taking effect immediately.
‘The independent Commission reaffirmed the principle that any breach of the PSRs is significant and justifies, indeed requires, a sporting sanction.’
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