Whelan wants to breakeven
Wigan owner Dave Whelan has said he expects the Premier League to vote in favour of a new breakeven rule on Thursday.
The new rule, which would mean clubs wouldn’t be allowed to spend more money than they generate, will come into play next season if teams vote for this new idea.
Whelan, who has been Wigan chairman for 17 years now, told the BBC “I think the clubs will say break-even is something they want. We could definitely see it”.
If the ruling is voted for, it could see a major change and revamp to the Premier League. For example, league champions Manchester City recorded an incredible £197m loss in their latest release of figures, with clubs like Liverpool also losing £49.4m.
In total, Premier League clubs in the 2010-11 season made cumulative losses of £361m, with this season being the most recent for which there are complete financial results.
On Thursday representatives of the 20 top flight teams will meet to discuss the issue of financial regulation and with 14 teams needed to vote in favour of the new ruling, Whelan has said it seems only Fulham are opposed to this new rule.
“This break-even rule will stop clubs getting into the red. There’s nothing worse than seeing a club like Portsmouth getting into financial trouble – or Rangers” – Whelan told BBC.
“If it’s passed on Thursday I think it will be a very good thing for football”.
Financial fair play
Uefa is also set to introduce their own financial fair play rules, allowing clubs to only make set losses in their first three seasons. Failure to do so after this spell would result in exclusion from European tournaments like the Champions League.
The Wigan owner has also stated his belief that the Premier League would have to be tough on teams who broke the rule, with Whelan saying points deduction or relegation as potential punishments for teams who didn’t abide.
The Premier League is only going to see more money come into the game next season, with a huge new £3bn television deal coming in, but chairmen are hoping this new influx of money won’t solely mean increased wages for players.
Last season Premiership clubs spent £1.6bn on wages alone, constituting 70% of their income, however Manchester City spent 114% of their money on wages, a prime example of the ridiculous nature of player salaries today.
This has led to a further proposal of wage caps being introduced. Sunderland are believed to be pushing hard for this ruling, but Whelan isn’t in favour, and has said he doubts a majority would vote for this rule.
But with more and more money being pumped into football, perhaps new rules on wages and spending would benefit the games integrity and give teams who aren’t owned by multi billionaires a fair shot in the Premier League.