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Premier League poised to implement a new regulation that will have a significant influence on several clubs: How will it function?

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Premier League poised to implement a new regulation that will have a significant influence on several clubs: How will it function?

According to a story in The Times, the EPL is ready to implement a new rule that will restrict the spending power of all teams.

Several clubs have found a means to circumvent the Financial Fair Play rule in recent years, funneling millions of pounds into the transfer market.

As a result, the new rule restricts EPL clubs to spending no more than 70% of their yearly revenue on player wages, transfers, and agents fees.

Next season, this rule will go into place, however the amount of spending will be 90 percent in 2023, 80 percent in 2024, and eventually 70 percent in 2025.

According to the article, if teams fail to comply with these rules, the EPL is considering fining them and docking them points.

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Will this rule equally benefit all Premier League clubs?

At first glance, it may appear that this new rule will level the playing field for all clubs, but in reality, this will ultimately benefit the clubs with wealthy owners.

First, the larger clubs will always spend more since they have access to the finest television deals outside of their own sponsorships and arrangements.

As worldwide brands, clubs like Manchester United, Man City, and Liverpool earn between 200 and 250 million pounds annually.

On the other hand, teams such as Palace, Forest, and Watford have little opportunities to increase their revenue, thus this new restriction will not be of great assistance to them.

Now, regarding the clubs with wealthy owners. It is only a matter of time before these owners find a means to circumvent this new EPL rule by funneling money through “sponsorships” to raise their revenue.

Premier League poised to implement a new regulation that will have a significant influence on several clubs: How will it function?

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