Premier League clubs have voted and agreed to new financial regulations regarding Financial Fair Play (FPP), that will limit their spendings on squad costs (transfer fees, player wages) to within 85% of their football related revenue and net profit from player sales. Income from other sales or ventures won't be allowed to be used for squad costs.
All Premier League clubs voted in favour except for Bournemouth, Brighton, Brentford, Crystal Palace, Fulham, and Leeds, who voted against.
This comes after Everton sold their women's team to Roundhouse Capital Holdings, a parent company controlled by club owner, Dan Friedkin, which allowed greater room for transfer spending; and after Chelsea sold two Stamford Bridge hotels to a sister company last year, once again to increase their salary cap to sign more players.
Those moves would not have been allowed under the rules approved today, which carry point deductions if rules are breached. Specifically, clubs that exceed the 85% of the club revenue in expenditure will be liable to fine, but if they exceed 115%, the would receive a sporting sanction. This is a lower threshold than UEFA, which allows a maximum of 70% of club revenue used in squad costs.
As it happens now, clubs need to carefully select their squads for European competitions to comply with UEFA's stricter financial fair play rules, more similar to the Spanish laws. "The new SCR (Squad Cost Ratio) rules are intended to promote opportunity for all clubs to aspire to greater success and bring the league's financial system close to Uefa's existing SCR rules," said Premier League in a statement.