The Premier League clubs today ratified rules governing financial fair play.
The rules that were ratified included:
1) Losses restricted to maximum of £105m over three-year period
2) Clubs whose total wage bill is more than £52 million will only be allowed to increase their wages by £4 million per season for the next three years (i..e £56 million the following year, and £60 million in 2015-16; only 7 of the current Premier League clubs would be included in that at the moment).
3) Wage bills can be supplemented by income generated separately from matchday and commercial revenue.
4) Losses of more than £5 million a year to be guaranteed against the assets of the club’s owner.
5) Any breach of salary or spending regulations could result in a points deduction in extreme cases.
The Premier League needed a two-thirds majority for the rules to be added to the rulebook. Fourteen clubs voted in favor, five against, while Swansea abstained.
What are your thoughts regarding the financial fair play rules that were ratified today by the Premier League? Share your opinions in the comments section below.