Premier League’s profit and sustainability rules could be scrapped, says CEO Masters | OneFootball

Premier League chief Richard Masters says the current profit and sustainability rules (PSR) could be scrapped in favour of another system of financial regulation.

The current rules laid out by the Premier League say clubs are allowed a maximum loss of £105 million over a three-year period.

But speaking at the Leaders in Sport conference, Premier League CEO Masters suggested those rules would likely be replaced by a squad cost ratio system similar to that in operation in UEFA competitions.

Those rules instead cap a club’s spending on player wages, transfer costs, and agent fees at a percentage of clubs’ revenue and profit from player sales.

“I think the PSR system, at the moment people are probably aware we are talking to our clubs about an alternative system,” Masters said.

“That’s not to say we don’t think the PSR system works. It’s about closer alignment with European regulation, which is squad cost ratio, which is a revenue test. The PSR is a look back profitability test and has its own strengths and weaknesses.

“No system will be perfect. So we’re currently talking about that, about whether we want to change financial system, align more with Europe because we now have nine clubs participating in European competitions, six in the Champions League.

“I think if you probably said that ten years ago no one would have believed that was possible but it is. So we have to keep these things balanced and continue the conversation with our clubs and it’s an important decision so we should take the time to get it right, but that decision is coming up.”

UEFA’s rules currently say clubs cannot exceed spending 70% of their income on signings, but Masters said the Premier League would implement a more lenient 85% mark.

“Our system will be 85% because we always want our clubs to have the ability to invest,” he said.

“So when you compare the Premier League system at 85%, if it happens, and you look at the other big European leagues, we have a more permissive system, too permissive some might say, and it’s all a matter of choice.

“The Premier League I think has been built on the back of investment, inward investment, international capital flows coming in and we don’t want that to be stymied off.

“We do need to work within parameters that everyone is behind and that protect the game.”