Premier League shareholders have ratified the rules governing the financial regulations for football clubs. This will help the authorities regulate player wages to an extent, and restrict losses that a club can make over 3 years, which can go up to £105 million.
Clubs that presently have a total wage amount of £52 million or more can increase their wage bill by £4 million every season for the next three years. This amount does not include money from advertising and matchday incomes, which can additionally be spent on wages. This decision was made for the benefit of the football federation, and was reached after chairmen from the Premier League clubs were called in for a meet. They needed two-thirds of the votes to go in the affirmative to approve the plan, and eventually, 14 of the 20 clubs were in agreement. For now, only seven clubs will fall under the £52 million bracket.
David Bernstien, chairman of the Football Association, was happy with this decision and also supported it. He said, “There is stress on clubs that none of us have wanted to see, with all the changes taking place in football. So it’s good to see that bit by bit UEFA, the Football League and the Premier League are taking a step in the right direction.”
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