Good news for Rangers and Celtics as Premier League summit proposes new FFP changes

Good news for Rangers and Celtics as Premier League summit proposes new FFP changes

Premier League club representatives met yesterday to discuss proposed amendments to the Financial Fair Play (FFP) and Profit and Sustainability Rules (PSR).

Significant revisions to the present £105 million maximum were proposed, as well as compliance with UEFA’s squad cost ratio scheme.

The UEFA system limits clubs to spending 70% of their revenue on squad costs, which include transfers, wages, and agent fees.

For example, if a club’s turnover is £900 million per year, they can spend 70% of it, or £630 million, on player costs.

In Newcastle’s scenario, the club’s turnover was £250 million in 2022/23, allowing them to spend £175 million on player fees.

The Magpies’ numbers will rise in the long run as they gain more sponsors and income.

However, due to their existing revenue streams, clubs such as Manchester City and Chelsea will be able to spend far more in the near future.

The meetings are scheduled to continue today, but no decision has been taken to amend the FFP and PSR regulations.

To implement the reforms, 14 Premier League clubs must vote in favour of them.

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