Have money, can challenge. EPL moots ‘luxury tax’ fines as alternative to points deductions

April 5 – The English Premier League is reported to be discussing a new ‘luxury tax’ fine system instead of points deductions to punish clubs who breach financial rules.

Both Nottingham Forest and Everton have been handed points deductions by independent commissions this season after being found guilty of breaching their permitted limit of losses over three years, thereby breaching profit and sustainability rules.

A ruling on Manchester City’s multiple alleged breaches of Premier League financial rules is also expected.

Many fear current spending rules will see the Premier League devalued and reports suggests clubs are now discussing a completely new system so that they can spend beyond the current financial restrictions, if they have the cash to do so, without punishment that could result in relegation.

A report by the Football Benchmark team shows that of the 13 highest operating revenue teams in Europe, eight have advanced to the quarter finals. The five that didn’t make it are four English teams – Manchester United, Liverpool, Tottenham Hotspur, and Chelsea (there is a limit of four English teams in the competition)  – and Juventus who are banned from European competitions.

See: Economic metrics show ECL quarter final ties are evenly balanced 

The discussed financial rule changes would mean teams overspending would have a financial punishment instead of points, with the money accumulated from fines redistributed to clubs staying within the rules.

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