What is PSR and why do Premier League rules only allow clubs to lose £105m?

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Everton could face a second points deduction this season after being charged with another breach of the Premier League’s profitability and sustainability rules (PSR).

Nottingham Forest were also charged, meaning both clubs have been referred to an independent commission after reporting losses that exceed the allowed amount over a three-year cycle.

Everton are already appealing against a 10-point deduction for breaches relating to the 2021-22 campaign.

Previously measures like these have often been referred to as FFP — Financial Fair Play — but the Premier League now refers to them as PSR, though the intention is the same: to police how much money clubs are allowed to lose over a given period of time.

Under the Premier League’s PSR rules, clubs are entitled to lose a maximum of £105million ($133m) over three seasons, although certain costs can be deducted, such as infrastructure, women’s football, investment in youth and community work.

But how did England’s top flight agree on the £105million figure and is there an argument that it should be increased in line with inflation?


Why is it £105m?

The simple answer is that the Premier League followed UEFA’s financial fair play (FFP) rules, which European football’s governing body established in 2009 and introduced at…

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