Manchester United reportedly dealt a huge blow alongside Newcastle and Aston Villa as Premier League's PSR rules remain for the 2025-26 campaign.
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Clubs were ready to replace existing PSR rules Latest developments indicate that might get delayedTrouble brewing for Man Utd and others Follow GOAL on WhatsApp! 🟢📱WHAT HAPPENED?
According to the Premier League clubs had initially agreed to implement new financial regulations, which were set to replace the widely debated PSR framework. One of the most notable changes under consideration was the introduction of a Squad Cost Ratio, which would have placed a limit on clubs spending more than 85% of their revenue on wages, transfer fees, and agent costs. However, this proposed rule has now been postponed, leaving clubs subject to the current system for another year.
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Additionally, the "anchoring" system, which aimed to cap spending relative to five times the income of the lowest-earning club in the league, was also on track for implementation. However, a recent vote by Premier League clubs resulted in a decision to push back its introduction until the 2026-27 season.
The decision to hold off on financial rule changes appears to have been influenced by Manchester City's latest legal battle concerning Associated Party Transactions (APT). The reigning champions recently challenged amendments to APT regulations, seeking an arbitration hearing to contest new rules imposed by the Premier League. City scored a significant legal victory when an arbitration panel ruled that certain elements of APT regulations were "unlawful". However, the Premier League quickly responded by introducing modifications to the rules, which were subsequently passed by a majority vote among member clubs.
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The Professional Footballers' Association (PFA) has also expressed strong opposition to the proposed anchoring system, warning that it may take legal action against the Premier League if the rule is introduced. While 16 clubs initially backed the idea of anchoring, Manchester United, Manchester City, and Aston Villa were among those who voted against the proposal, while Chelsea abstained from the vote.
Under the current Premier League financial regulations, clubs are permitted to incur losses of up to £105 million over a rolling three-year period. However, several clubs, including Aston Villa and Newcastle United, have pushed for raising this threshold in order to allow for greater financial flexibility. Aston Villa had previously suggested increasing the loss allowance to £135 million over three years, but this idea has yet to gain enough support to be implemented.
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Despite ongoing concerns about PSR compliance, the Premier League has not issued any charges against clubs for breaching spending rules in the 2023-24 accounting period. A formal decision was reached last month, ensuring that no team would face immediate penalties under the current financial regulations. However, with the PSR framework staying in place for another year, teams like Manchester United, Newcastle, and Aston Villa will have to exercise caution in their transfer dealings and wage structures to ensure compliance.
