What if the Premier League had spending caps for clubs like La Liga? – The Athletic

The Premier League is one of the UK’s most successful exports and everyone in it makes money, right? Well, the first part of that statement is true, with the broadcast rights the envy of the rest of the football world and only fans in five countries (North Korea, Cuba, Afghanistan, Moldova and Turkmenistan) are denied the chance to watch Norwich vs Burnley on a Monday night.

When it comes to making money, the jury is out, at best. When Chelsea played Manchester City in the Champions League final in May, the match featured the two clubs that had made the highest pre-tax losses in Premier League history. Between them, Chelsea and City had lost over £1.5 billion, a price worth paying if you look in the trophy cabinet. But, according to some, such spending reduces the sustainability of the domestic game as others play catch-up in terms of wages and transfer fees.

The present “Profitability and Sustainability” rules (a name probably devised by Premier League middle management on a blue-sky thinking awayday in a hotel conference room), which most fans still refer to as financial fair play, is a “breakeven” model. Clubs are allowed to lose £15 million pre-tax over a rolling three-year period. However, certain costs (academy, community, women’s team, infrastructure) are excluded, and owners are allowed to contribute via share issues a further £90 million over the three-year period.

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