West Ham are in line to feel the effects of upcoming rule changes to Financial Far Play following a review attended by all Premier League clubs.
A meeting amongst all 20 Premier League clubs is being held this week, with major changes on the table being proposed to the Premier League’s FFP rules to align them with UEFA’s newly introduced cost control measures.
The current £105 million cap on losses over a three year period has been in place since 2013, and some critics of the policy believe it is outdated and out of touch with the modern game.
UEFA’s cost control measures mean that clubs competing in UEFA competitions will be limited to spending 70% of their revenue on wages and transfer fees. These proposals will allow clubs who are not competing in European competition more freedom, they will be able to spend 85% of their revenue on wages and transfer fees.
Sources have told iNews this is to allow them the ability to spend more and attempt to catch up with the previous year’s top six. The new rules are an attempt to curb the rate at which wage levels have risen, and according to UEFA President Alexander Ceferin to “ensure clubs are sustainable moving forward”.
Manchester City’s revenue for 2023 was over £700 million, if the new rules are to be introduced, this will mean they will be able to spend £490 million on transfers and wages. These regulations will be bad news for clubs like West Ham, Newcastle and Aston Villa according to football finance expert Kieran Maguire.
Maguire told iNews that it could become increasingly challenging for club’s outside of the elite/top six to break into it. West Ham’s turnover for last season was around £236.7 million meaning the club would have significantly less ability to spend on transfer fees and player wages.
The Hammers were placed on UEFA’s FFP watch list at the end of 2022, and in what was a quiet January transfer window across the board, the club had to sell players to buy, with Kalvin Phillips on loan being the only addition.
iNews claims the proposed changes could be introduced in time for the summer transfer window, and it will certainly be interesting to see how, if introduced, they will impact West Ham’s transfer business and ability to complete deals moving forward.
Written by Finlay Jackson