Tony Bloom, the owner of Brighton, has openly criticized the excessive spending habits of some Premier League clubs, including Everton.
Brighton has a disciplined transfer policy that has given it a reputation as savvy in the transfer market. Thus, Bloom has expressed concern about the growing trend of clubs facing point deductions due to financial mismanagement. This issue has recently come to the forefront with clubs like Everton and Nottingham Forest receiving penalties for breaching profit and sustainability regulations (PSR).
Bloom has voiced his discomfort with the idea of deducting points from clubs’ mid-season. He told BBC: “I don’t like the idea of clubs having points deducted in the middle of the season. However, if rules have been broken the Premier League has to apply the rules. It would be much better if clubs didn’t put the Premier League in the situation where points deductions are necessary.”
This season, Everton suffered an eight-point deduction, and Nottingham Forest dropped four points for violating PSR rules. These sanctions highlight the ongoing financial issues within the league. Clubs spend excessively to secure player transfers, often leading to financial instability and penalties.
Clubs’ financial landscape
In a bid to avoid PSR penalties, Premier League clubs spent a staggering $313.5 million around June 30. This is the “unofficial transfer deadline day.” The end of one accounting period, and the subsequent opening of another, drives this spending frenzy. Despite these efforts, it will be several months before the Premier League confirms if any clubs have violated the spending rules and will face charges.
Promoted clubs like Leicester City are already under scrutiny for potentially exceeding loss limits over three years leading up to the 2022-23 season, which saw them relegated. In contrast, Brighton has maintained a healthy financial status, posting a record $157 million profit last season. This financial stability allowed the club to reduce the balance on their owner’s interest-free loan to $478 million; ensuring they remain compliant with PSR regulations.
Brighton sends message to rival clubs like Everton
The current PSR rules will continue for the upcoming season. There is a potential new “anchoring” cost control system in tests before a possible introduction in the 2025-26 season. This system, along with ongoing legal challenges such as Manchester City’s dispute over associated party transactions (APT), has created a period of uncertainty within the Premier League.
The league is also facing halted discussions over a “New Deal” for funding with the English Football League (EFL) and the likely introduction of a Football Regulator. Furthermore, these issues contribute to a complex financial environment for Premier League clubs. Bloom addressed these challenges.
“The Premier League is in a superb position but there are some issues, which hopefully will get resolved over the next one or two years. For us, it is background noise. The 30 June situation is weird and with the new rules, that won’t be happening again. We know what we need to do, and we don’t let that [other issues] affect us.”
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