Premier League clubs agree on major decision set to impact Newcastle United, Everton, Aston Villa & co

Premier League clubs have voted to fast track new financial restrictions following a clampdown by the league on their current Profit and Sustainability Rules (PSR). Everton have already been handed a six-point deduction whilst they and Nottingham Forest await potential further punishment for breaches of these rules.

PSR constraints meant the January transfer window was an uncharacteristically quiet one across the top-flight with clubs reluctant to spend money and potentially breach these rules. For Newcastle United, that meant a refusal to add any senior players to their squad, despite Eddie Howe’s options across the pitch being ravaged by injury and suspensions.

The Magpies even rowed back on their interest in a move for Manchester City’s Kalvin Phillips because of financial reasons, despite that being just a loan move. It was a similar story across the division and this summer could see clubs outside the traditional ‘Big Six’ forced to sell some of their key players in order to comply with the current rules.

However, a shareholder meeting between the clubs on Monday saw the clubs agree "to prioritise the swift development and implementation of a new league-wide financial system" to replace the current rules. The new model will likely be based on UEFA’s current system which limits clubs to spending 70% of turnover on transfers and wages and could see clubs out of European competition be allowed to spend up to 85% of turnover on transfers and wages.

The new rules could be implemented at the Premier League’s AGM in June. For Forest and Everton, however, this means they will still be subject to the Premier League’s current financial rules and will likely still be punished in line with those rules. 

The clubs did not agree on a ‘New Deal’ for EFL funding however, despite being informed at the end of February that if no deal could be agreed then one would be imposed on them. The Premier League have reiterated that a ‘New Deal’ for the EFL will be implemented once these new financial rules come into effect. The EFL are set to meet on Thursday and will likely submit their response to this.