8 Feb 2013

Football clubs could lose points if they don't limit losses

11:30 am on 8 February 2013

English Premier League football clubs could be docked points if they fail to comply with new limits on financial losses and curbs on increases in payments to players.

The measures are designed to help ensure that a $10 billion television windfall brings a new era of financial stability rather than being frittered away on player wages.

The curbs are less stringent than UEFA's Financial Fair Play measures which will force top Premier League clubs to move towards breakeven or face exclusion from European competition.

Premier League clubs will be limited to maximum aggregate losses of $200 million over the three years from 2013 to 2016, coinciding with the new TV contracts.

Clubs losing more than that will face disciplinary sanctions which could include point deductions.

The league is seeking to promote stability without preventing owners from investing in their clubs to join the elite as Chelsea and Manchester City have done over the past decade.

From next season clubs with higher wage bills will also face curbs on how much more than can spend on player costs.