Premier League U-turn may affect EFL teams, QPR, Millwall, and Charlton.
Premier League U-turn may affect EFL teams, QPR, Millwall, and Charlton.
Reports of a Premier League reversal on point penalties may have an effect on the London clubs participating in the EFL.
This summer, Premier League teams will have a say in a new system of sanctions for violating the Profitability and Sustainability Rules. This might help all EFL clubs, including Charlton Athletic, Leyton Orient, Watford, and QPR in London, as well as League Two teams.
The shocking news that elite teams may be about to abandon point deductions in favor of a “luxury tax” fine was revealed by The Daily Mail today. The choice would be made subsequent to Nottingham Forest and Everton receiving point punishments for violating Premier League spending regulations.
Due in large part to teams’ concern of breaking the regulations, Premier League expenditure was curtailed in January. There is also reportedly concern that the Premier League’s standing as the wealthiest league in the world may suffer as a result of this mindset.
According to the site, clubs have talked about a “radical reform” that may be put to a vote at a meeting in June. It is thought that 17 of the 20 Premier League teams are prepared to support the “luxury tax” amendment; only 14 votes in favor are required for it to be approved.
It is argued that teams in the Championship, League One, and League Two may gain from such a vote, even if the Premier League would still be the greatest beneficiary. Under a luxury tax system, clubs that go over budget would face financial penalties as opposed to point deductions. The financial penalty increases with their expenditure.
After then, it would be suggested that the money amassed be divided among the Premier League teams that adhere to the spending caps. A portion of the funds would also be placed into a “emergency fund” for EFL teams who are “in financial danger.”
That money may be useful to teams like Reading. Since 2021, the Berkshire team has lost a total of 18 points because owner Dai Yongge has not been able to provide funding for the team. Although the London clubs are not in such a severe condition right now, a luxury tax system may have some funds set aside in case anything similar occurs.
