The expectation so far is that the latest, record-breaking deal, £5.136 billion domestically, and around £8 billion including international rights sales, will generate average uplift per team, per year of around £40 million. The spending limits are expected to reflect that increase and mid-to-small ranking clubs especially will hope they act as a block on wages rising in line with increased revenues.
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But what the clubs do with that saved money is now likely to come under even greater scrutiny amid growing anger at ticket prices, that have coalesced around the Liverpool fans’ protest about the £77 tickets in their club’s new Main Stand, a policy that has since been abandoned. The hope is that they will be used to subsidise away travel, reduce debt or be spent on stadium and training grounds, but the fear is that they could be taken out of the club as a profit for owners.
The Premier League will encourage clubs to be more open about what that money is spent on. Over the last three years, clubs averaging an annual £24 million uplift have saved £48 million over the three-year deal. With that average uplift expected to rise to £40 million for this deal, the savings will be substantial. The restrictions only relate to player wages, so clubs can spend the extra cash on transfer fees if they wish.
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The measures were introduced in intentionally low-key terms by the Premier League in February 2013 and were known officially as “short-term cost control measures”. Clubs could still spend as they wished on their match-day and commercial revenue on player salaries and the measures were only applicable to clubs with wage bills of more than £52 million, in the first season, rising to £60 million this season.
In order to administer the system, clubs had to report all salaries and bonus schemes to the Premier League administration so that their spending could be regulated. The measures were proposed by clubs such as West Ham, Sunderland and Wigan Athletic, then a Premier League club, who wanted them primarily as a bulwark against agents demanding ever larger salaries for their clients.
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The measures were passed, but only after a deal with clubs led by Arsenal, Manchester United, Liverpool and Tottenham Hotspur who pushed for financial fair play regulations that forbid clubs from making losses of more than £105 million over the three-year period. Then, three years ago, that was regarded as a way of curbing then champions Manchester City who were establishing themselves as the new power in English football.
A Premier League spokesman said: “There is absolute agreement from the 20 Premier League clubs that something needs to be done to help away fans with costs. At the moment there is not a consensus on what form that help will take. That is what we are working on, and it will be something meaningful for the start of next season.”
The rising cost of football ticket prices
- Telegraph