New Premier League Spending Rules Set to Shake Up Club Finances.
A University of Liverpool football finance expert, Kieran Maguire, has unveiled new insights into how upcoming Premier League spending rules could reshape club finances starting this summer.
Taking to Twitter on April 11, Maguire outlined the potential impact of regulations that will align more closely with UEFA’s financial control systems, permitting clubs to spend up to 70% of their revenue on squad costs.
Under the current profit and sustainability guidelines, teams like Everton and Nottingham Forest faced points deductions, but these rules are set to be replaced.
Maguire’s analysis suggests a significant shift in how clubs can manage their finances, particularly affecting teams’ ability to invest in new players.
“Let’s not pretend we care about the rules themselves; what is important is how much we can spend, or if we need to save,” Maguire tweeted. He noted that, assuming player wages make up 80% of total expenses, and using the best profit figures from the last one to three years, his estimates show varying outcomes for different clubs.
Notably, five of the so-called ‘SuperLeague Six’ will have the capacity to significantly increase their spending. Brighton, which Maguire calls the “Financial Teacher’s Pet,” also appears well-placed to invest more in their squad. Conversely, ambitious clubs like Aston Villa, Nottingham Forest, and Newcastle might find themselves restricted and needing to cut costs.”
Projected impact of new EPL spending rule on Leeds United.
For Leeds United, Maguire’s calculations reveal a challenging scenario. Based on financial accounts from their last Premier League season before relegation, Leeds might be approximately £2.2 million over the squad cost cap, constraining their spending abilities.
Despite changes in ownership from Andrea Radrizzani to the 49ers group, which have brought some stability, the club still deals with financial holdovers from previous mismanagement, including significant transfer fees owed with little incoming revenue anticipated.
Leeds United faces additional pressure from a revenue drop due to a season outside the top flight, despite parachute payments.
Recent deals, such as those for Tyler Adams and Luis Sinisterra moving to Bournemouth, may help, but the broader sales outlook remains bleak, with few high-value players available for transfer.
As these new rules come into play, clubs across the Premier League will need to navigate their financial strategies carefully, balancing ambition with fiscal responsibility.
