Newcastle Meeting Premier League To Set Spending Limits
The Premier League chairmen will be presented with a number of options by the league’s top executives, these could lead to clubs being forced to break even every year or face sanctions.
It is not expected that there will be a decision immediately, with plans already in place for the clubs to then split into two groups of 10 with each having a mix of size and region, which will then go into the options in more detail.
This follows the decision earlier this year when the Championship agreed to limit the losses they can incur and levels of equity investment from shareholders, only 3 of the 24 clubs voted against the measures. In leagues one and two the club had already agreed to work with a salary cap.
The proposal, many would say unsurprisingly, came from Manchester United earlier this summer and is believed to have widespread support in the Premier League. Manchester United of course can generate the most revenue so it would clearly enhance their potential, while it will be interesting to see what the likes of Chelsea and Manchester City make of it.
It would be a major surprise if Mike Ashley wasn’t in favour of the proposals, while his old mate Dave Whelan at Wigan has already declared his support.
Whelan: “The proposal came from Manchester United – I think City have shaken them up a little bit. The Premier League is so big and powerful, there is so much money around and the clubs try and chase it, something has to be done”.
Manchester United’s chief executive David Gill, “We’ve got financial regulations in the league below us in the Championship and in the competition above us, the Champions League, so we need to do it”.
At the end of the 2010/11 season, Manchester City finished ‘top’ with losses of £197m, runners-up Chelsea losing £68m and Liverpool only a feeble £49m!
***Free delivery on NUFC strip orders of over £50 (UK) and £75 (rest of world) for limited period from Kitbag
If you would like to feature on The Mag, submit your article to [email protected]