West Ham set to adopt new financial model
The Premier League appears to be set to replace Financial Fair Play (FFP) and Profit and Sustainability Rules (PSR)
A number of alternative options, such as a luxury tax and a salary cap, have been discussed but the top flight league appears ready to press ahead with a basic squad-cost ratio system.
This model will allow clubs to spend up to 85 per cent of their revenue on transfers, wages and agent fees. A similar system is being adopted by UEFA whereby clubs in European competition can only spend 70 per cent of their income.
Last Thursday Premier League shareholders meeting saw the 20 clubs hold two votes on the new rules, according to Sky Sports, one of which reached a unanimous verdict. Now said to be agreed in principle, the league will aim to enshrine in it their rulebook at their summer AGM.
As West Ham turnover was £237m last season it would mean they could spend £201m on wages, agent fees and transfers.
With the Hammers wages running around £137m and £13m of agent fees that new financial model would leave around £51m in transfer amortisation for West Ham.
As West Ham have been abiding by the UFEA financial control system this does not pose a problem for the club.