English clubs could get more freedom to spend money under a new financial proposal set to be discussed by the Premier League next week, according to the Times.
Crystal Palace submitted the proposal, and the clubs will vote on it at their annual general meeting on June 6.
The proposal aims to help clubs such as Aston Villa, surprise qualifiers for the Champions League, compete financially with established European giants.
UEFA’s current coefficient payments reward clubs based on their past performance in European competitions.
This model creates an uneven playing field for clubs like Villa, who have not consistently qualified for Europe.
Manchester City are set to receive £28 million for the 2023/24 season and hold a significant advantage over Villa, who are projected to receive around £3.8m.
Palace’s proposal targets this unfair advantage. They want to change the Premier League’s financial rules to allow clubs to claim the difference between their coefficient payment and the top club’s payment as an allowable loss.
This could be a financial boost for Villa, allowing them to spend an extra £20-30m while avoiding a potential breach of the Premier League’s Profit and Sustainability Rules (PSR), which permits a £105m loss limit over three years.
Villa are also pushing to increase the overall PSR loss limit to £135 million to give themselves more spending room.
However, the Premier League will be worried this could allow other clubs to escape punishment for financial missteps.
Palace’s plan offers an alternative solution specifically aimed at helping clubs bridge the gap created by UEFA’s payment system.
UEFA is reducing coefficient payments for the upcoming Champions League format, but the exact impact remains unclear.
Palace’s proposal can help level the financial playing field and bolster the competitiveness of English clubs in European competitions.
