Luxury tax

[Vegas Claret]

The Premier League is considering REMOVING points deductions and introducing an NBA-style 'luxury tax' due to concerns that top players might leave if their pay is restricted.

The 'luxury tax' would penalise clubs financially for overspending, with the penalty increasing based on their spending. Clubs in theory could still choose to spend freely if they prefer but with the knowledge of taking another financial hit.

The tax could then be distributed to the other Premier League clubs who stayed within the rules.

Above is from Mike Keegan of the DM

[boatshed bill]

So basically if you can afford it do what you like.

[AGENT_CLARET]

So basically if you can afford it do what you like.

Exactly. It won't mean a thing to clubs like Man city with sqillions in the bank it'll be like giving us a fine of fifty pence bloody ridiculous

[Clovius Boofus]

It should be both points deductions AND fines shared out amongst the rest - that's if they really want to clean up the mess and hit the wrongdoers.

[elwaclaret]

So basically if you can afford it do what you like.

The Americanisation of our national game continues. Football moves ever further away from the man in the street and from being sport to becoming a theatre for the rich.

[Goliath]

The problem with the current system is it completely reinforces the status quo. It removes any shred of hope for a club like us ever reaching the top because of limitations on spending.

I think the proposed system would be preferable in a sporting sense but would risk spending getting completely out of control.

[Rileybobs]

That organisation needs to grow a pair.

[KRBFC]

The problem with the current system is it completely reinforces the status quo. It removes any shred of hope for a club like us ever reaching the top because of limitations on spending.

I think the proposed system would be preferable in a sporting sense but would risk spending getting completely out of control.

Agree, now the “big 6” is cemented, it essentially stops Newcastle from doing the exact same thing Chelsea and City did which isn’t really fair.

[KRBFC]

If the Saudis want to buy Burnley and throw millions at it to compete with City, why not? Who doesn’t benefit?

I believe the City owners have done a lot for the local area, no doubt helped local businesses too with the influx of tourist fans.

City fans have got to see success

the league has clearly gained in popularity from Chelsea/City which means more eyes, more money filtered down the leagues.

The only people who don’t benefit if Newcastle do the same is the big six who have one more super team to compete against.

[bumba]

The new rules will probably mean they can let City off the hook though

[Goliath]

Agree, now the “big 6” is cemented, it essentially stops Newcastle from doing the exact same thing Chelsea and City did which isn’t really fair.

Exactly. It's crap. The Premier league could actually be really exciting if all clubs had the same allowance for spending. We could have had Forest, Everton, Newcastle all up there challenging with the money they would have thrown at it.

The problem is when those owners get bored then the clubs could be screwed which is why this system was introduced in the first place. There's yet to be a decent proposal to solve that problem.

[distortiondave]

These are all stepping stones to a closed league with no relegation.

[Poulton-le-Claret]

Anything for the PL to avoid penalising their 'Champions'.

I'd rather be in League 1 than become another Saudi puppet club. What is the point in success if literally no one respects it.

[Chester Perry]

That organisation needs to grow a pair.

That organisation is controlled by what it's members decide - the more billionaire owners that have come in the less the guidance offered by the Premier League staff is listened to.

If English football is to pursue a more American Model, it would be best if it were to appoint a commissioner, someone with power and authority that cannot be challenged by club owners, it has worked well for a number of American sports

[DAVETHEVICAR]

Something has to happen as Teams like the Manchester clubs ,Arsenal ,Spurs and Chelsea plus other with very rich owners, Newcastle are never going to get points deducted .
If they were the Championship would be stronger than the Premier League .
Points deduction are to me a farce anyway with the Sky system in place the teams with ridiculously rich owners are going to get stronger and teams like Burnley with owners with no money are going to get weaker unless they stay in the Prey League for years and years.
Parachute payments will end in the next few years anyway
Just my opinion , obviously many will disagree

[yTib]

unfortunately people seem to forget football is a business and we live in a free market economy.

i wish it wasn't so but it is.

the sport we knew is all but gone and no amount of tinkering is going to bring it back.

[Tricky Trevor]

Forget point deductions, it is cheating. AUTOMATIC RELEGATION is the way.
That would keep their accountants busy.

[ElectroClaret]

These are all stepping stones to a closed league with no relegation.

Yep.
That's the way it's going.

[Boss Hogg]

Really weak. Making it a closed competition for ultra rich owners will kill the best league and league structure in the world.

[IanMcL]

These are all stepping stones to a closed league with no relegation.

As above.

[IanMcL]

These are all stepping stones to a closed league with no relegation.

As above.

If they can get the 20 they want, then shut up shop.

[Murger]

This just smacks of laziness on the authorities part. Clubs less likely to fight a financial penalty than a points deduction.

[ClaretJimmy]

Let these top clubs bugger off to a super league then they can do what they want. It would allow normal clubs to actually compete

[123EasyasBFC]

Any new rules and regulations shouldn’t be put in place until city and Chelsea’s cases are heard.

Or at least hear their cases under the same rules Everton and Forest have

[Hipper]

You have to remember why the financial rules were put in place. It was to encourage clubs to manage finances sensibly and prevent them going bust, which is an embarrassment to the Premier League.

Financial penalties are useless for clubs going bust but suit those with infinite finance. A points deduction, therefore hitting at what all clubs are looking for, points, is the best way.

Ever since the removal of the maximum wage big spending clubs have been more likely to (legally) dominate. It's life the way we capitalists choose to live it.

[Chester Perry]

As above.

If they can get the 20 they want, then shut up shop.

I am not sure that is possible under the rules -

Also I think that the FA has a power of veto with its golden share

Finally I believe there is a section of the Football Governance Act 2024 - that is progressing within Parliament/House of Lords - which specifically makes that very difficult if not impossible

[Chester Perry]

Any new rules and regulations shouldn’t be put in place until city and Chelsea’s cases are heard.

Or at least hear their cases under the same rules Everton and Forest have

Which may be why there is talk of the changes coming in in 2025/26

[superdimitri]

The current system doesn't seem to help so if they use the money gained in the same way they do in the MLS then I can see it having a positive impact.
It would mean more money could go into the lower leagues and would bring something good from the ridiculous money rich owners put into teams.

[Chester Perry]

The current system doesn't seem to help so if they use the money gained in the same way they do in the MLS then I can see it having a positive impact.
It would mean more money could go into the lower leagues and would bring something good from the ridiculous money rich owners put into teams.

It is just as likely to go to the poorer premier League clubs as a central distribution - as it is that which could cause the problem if the Salary anchor is put in place - I said previously on the MMT that is in the interests of the big clubs who regularly play and want to win in Europe to increase the monies received by those who don't so they can spend more on wages to try and keep up with Real Madrid, Barcelona (in better financial circumstances) and Bayern Munich amongst others

[Stockbrokerbelt]

Just push the big 6 clubs to the Euro super league that I’m sure the Saudi’s would love to bankroll & the prem would be as competitive as the championship & supported by fans.

[Rileybobs]

Just push the big 6 clubs to the Euro super league that I’m sure the Saudi’s would love to bankroll & the prem would be as competitive as the championship & supported by fans.

And what of supporters of the big 6 clubs? Do you think they all want their team to be pushed into a Euro super league?

And as for the Championship being competitive - it didn’t seem that way last season when we outspent other teams and walked the league.

[CoolClaret]

we live in a free market economy

We really, really, really, really don't.

[123EasyasBFC]

Which may be why there is talk of the changes coming in in 2025/26

That makes sense, not that the luxury tax idea actually makes much sense, seems silly to follow an NBA style financial mode in a sport and competition that doesn’t have promotion and relegation. Teams often sacrifice full seasons in hope to get the number one draft pick

[bfcmik]

The new rules will probably mean they can let City off the hook though

City aren't being looked at for overspending though, their charges all involve false declarations of the value of sponsorship deals and false declarations about where the sponsorship money originated. The CEO of Etihad Airlines, the auditors for the years concerned, the Emir, the CEO of City, the CFOs of a number of entities will all have to be proved to be outright lying for the case to be proven. All those people can afford the very best legal teams money can buy and their personal integrity and reputations are at stake. That is what will get City off the hook!

[Chester Perry]

I put this on the MMT but works here too

Miguel Delaney in The Independent on the fallacy of the proposal of a Luxury Tax for the Premier League

Why a Premier League luxury tax would lead to financial chaos
Premier League owners have been discussing solutions to the current profit and sustainability rules, following a series of points deductions, but a luxury tax could have severe ramifications for the future of the league and its clubs
https://www.independent.co.uk/sport/foo ... 23911.html
https://archive.ph/l3MdK

[Cirrus_Minor]

Only a matter of time before the Premier league has no relegation and quarter breaks, for TV adverts and fans to buy merchandise, food, etc.

[Spike]

Then there is the VAR tax that hands points to the top clubs at the expense of the lower clubs

[yTib]

Then there is the VAR tax that hands points to the top clubs at the expense of the lower clubs

but what about the 'trickle down' effect?

[IanMcL]

Just push the big 6 clubs to the Euro super league that I’m sure the Saudi’s would love to bankroll & the prem would be as competitive as the championship & supported by fans.

If the Euro Super league took off, the prem would be just another league.

[Belgianclaret]

If the Saudis want to buy Burnley and throw millions at it to compete with City, why not? Who doesn’t benefit?

I believe the City owners have done a lot for the local area, no doubt helped local businesses too with the influx of tourist fans.

City fans have got to see success

the league has clearly gained in popularity from Chelsea/City which means more eyes, more money filtered down the leagues.

The only people who don’t benefit if Newcastle do the same is the big six who have one more super team to compete against.

If I'm not mistaken, they promised to do a whole lot for the local community but did diddly squat after taking over and no-one could do anything about it.