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The Premier League is reportedly considering abolishing points deduction and introducing a ‘luxury tax’. The league will reportedly make changes amid fears around profit and sustainability rules. In February, Everton’s 10-point reduction for breaching the profit and sustainability rules was eventually reduced to six points after an appeal. Later, Nottingham Forest also appealed for the reduction after they were hit with a four-point deduction for breaching PSR.
According to reports by Daily Mail, there is fear that PSR will hinder the Premier League’s position as one of the best leagues in the world. Among all the concerns, a new system is likely to be introduced as 17 out of 20 clubs seemingly agree on making significant changes. The reports state that the new system could be voted in at the end of the season meeting in July.
Apart from that, a ‘luxury tax’ has been considered where the clubs who overspend would have a financial punishment. The money that will be collected would then be redistributed to those Premier League who compiled by the rules. Not only this, but some portion of the fine could even go into an ‘emergency fund’ to assist EFL clubs during their financial crisis. Currently, such taxes are featured in the MLB and NBA.
Considering Manchester City’s current situation, officials have suggested that an independent will take care of it, which will have its trial period during the late autumn of 2024. City were charged with ‘numerous breaches’ of financial rules after a four-year investigation by the Premier League. However, City denied breaching any of the rules and said they looked forward to this matter being settled.
