Manchester United could be one of a number of Premier League clubs set to suffer at the hands of new financial penalties.
Battle with PSR
The Red Devils, like numerous Premier League clubs, have had to tighten their belt in regards to new financial rules.
Profit and Sustainability Rules (PSR) have changed the game in English football as teams must pay careful attention to their limit losses over a three-year period.
Everton, Leicester City and Nottingham Forest have all been charged with breaking PSR rules and United have taken measures to ensure they aren’t next.
Ineos have defended drastic cuts to staff and the sale of academy players as solutions to United’s potential financial problems.
New Salary Cap
New rulings could put forward a “top-to-bottom anchoring model – or TBA – would restrict the amount any club can spend on player wages, agents and transfer fees to five times the income earned from broadcasting and prize money by the bottom club in the English top flight.”
Effectively, “the approach means that a cap would be imposed on clubs’ spending, regardless of their own income.”
Naturally, there is significant division within the league on whether or not to implement new rules ahead of the meeting on the 21st November when clubs will vote on a decision.
United could suffer badly
Manchester United owner Sir Jim Ratcliffe has already made his opinion clear on the matter. In quotes taken from football365.com he stated, “[anchoring] would inhibit the top clubs in the Premier League. And the last thing you want is for the top clubs in the Premier League not to be able to compete with Real Madrid, Barcelona, Bayern Munich, PSG – that’s absurd. And if it does, it then ceases to be the finest league in the world.”
The website also states that were the rules to be applied today, United would face the third most severe punishment in the league.
With a wage total of £364.7 million, combined agent fees of £33 million and transfer amortisation costs of £187 million, United have a total expenditure of £584.7 million.
This would currently see the Red Devils pick up an 11 point deduction in the league.
Chelsea would see a 12 point loss but Manchester City would be the biggest losers.
The Citizens would be in line for a whopping 23 point deduction if there was an immediate application of the possible new rules.
Featured image Michael Regan via Getty Images
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Alex Browne
Alex is a huge Manchester United fan, inspired by greats of his homeland such as George Best, Harry Gregg and Norman Whiteside. Alex has a Master’s degree from Queen’s University Belfast and La Universitat Rovira i Virgili in Tarragona, Spain. Having lived in the country since 2011, Alex is The Peoples Person’s Spanish football expert and is fluent in both Spanish and Catalan. He dreams of witnessing a United captain triumphantly hoisting the Premier League and Champions League trophy in the air once more.
