Premier League U-turn could have impact on QPR, Millwall, Charlton and EFL clubs

Premier League teams could be punished for breaches financially, with some of the fee going to the EFL.Premier League teams could be punished for breaches financially, with some of the fee going to the EFL.
Premier League teams could be punished for breaches financially, with some of the fee going to the EFL. | Getty Images
News of a Premier League U-turn on points punishments could in-turn impact the London clubs in the EFL.

Premier League clubs could vote in a new way of punishing breaches of Profitability and Sustainability Rules this summer that could have a knock-on benefit to EFL clubs including London sides QPR, Millwall and Watford, as well as Charlton Athletic, Leyton Orient and clubs in League Two.

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The Daily Mail today reported the bombshell that top-flight clubs could be on the verge of scrapping points deductions in favour of a 'luxury tax' penalty. The decision would come after Everton and Nottingham Forest were slapped with points deductions for not adhering to spending guidelines in the Premier League.

Those punishments played a large part in reducing Premier League spending this January as clubs feared falling foul of the rules. Now, there is believed to be a worry that such an attitude could see the Premier League's reputation as the richest league in the world falter.

The outlet reports that clubs have discussed a 'radical reform' that could be approved by vote in a June meeting. 17 of the 20 Premier League clubs are believed to be ready to back the 'luxury tax' change - only 14 'yes' votes are needed to green light approval.

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While the biggest impact of such a vote would remain in the Premier League, it is suggested that there could be a knock-on benefit to clubs in the Championship, League One and League Two. A luxury tax system would mean that clubs that spent over the limit would have a financial punishment imposed rather than a points penalty. The more they spend, the greater the financial punishment is.

The proposition would then be for the money accumulated to be redistributed to the Premier League clubs that stay within the spending parameters. Some of the cash would also go into an 'emergency fund' for EFL clubs 'in financial danger'.

That money could potentially help teams such as Reading. The Berkshire outfit has been hit with a total 18-point deduction since 2021 as owner Dai Yongge fails to finance the club. The London clubs are not currently in such a dire situation - but a luxury tax system could hold some money to help should a similar scenario happen.

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Premier League teams could be punished for breaches financially, with some of the fee going to the EFL.Premier League teams could be punished for breaches financially, with some of the fee going to the EFL.
Premier League teams could be punished for breaches financially, with some of the fee going to the EFL. | Getty Images

The news comes less than a month after the Premier League failed to secure an agreement for a new £836 million financial settlement for the EFL. Top flights had been warned that failure to find a solution would see one imposed on them by the new Football Regulator.

That failure ruffled feathers in the EFL, particularly at Charlton Athletic. Club co-owner Charlie Methven told talkSPORT that clubs needed to 'grow up'. Methven said: “There are a few Premier League clubs that are holding the industry back and are driving the rest of the industry mad for only thinking of their own short-term, narrow self-interest. Frankly, everything else is just noise. It’s on record that Palace and West Ham are leaders of this King Canute-style movement. It’s not yet a matter of public record which clubs they’ve persuaded to be in their corner.

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“If you speak to executives from other clubs in the Premier League, they are almost as frustrated as we are. They know because they see a bigger strategic vision of what will happen with the public regulator. [Palace and West Ham need to] grow up. Remember that these clubs, the clubs they run, were very recently Football League members and the fact that in a game of musical chairs they are in the seats they are currently at. It doesn’t mean that at some point their clubs won’t be back in the Football League.”

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