Premier League clubs in England have agreed ‘in principle’ to introduce what the BBC are terming ‘radical new cost controls’
There are two ideas: Sunderland owner Ellis Short’s cap on wages rises, and a break-even rule similar to Financial Fair Play, the rule which is being introduced in the Football League, and which operates in European competition.
According to the BBC, chief executives have now been asked to ‘produce detailed plans’ for exactly how each will work.
Premier League clubs cumulatively lost £361m in 2010-11, with Manchester City already having made a staggering £97.9m loss last year, with City being one of the clubs, alongside heaviliy indebted Fulham – who currently owe owner Mohammed Fayed around £200m. To introduce such a rule, only 14 of the 20 Premier League clubs need to vote in favour.
The agreement follows six other such meetings. The next meeting will be on 6 February.