Pau Torres Aston Villa 2023-24Getty Images

Man City have backup! Aston Villa considering legal action against Premier League over Profitability and Sustainability rules

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  • Premier League face double trouble
  • Villa wage legal battle against the PL
  • Labelled PSR breaches as “opaque and seemingly arbitrary”
  • WHAT HAPPENED?

    According to The Times,the Premier League is bracing for another legal battle as Aston Villa’s owner, Nassef Sawiris, considers challenging the league's Profitability and Sustainability Rules. This follows Manchester City's ongoing arbitration over Associated Party Transactions, marking a significant moment for financial governance in English football.

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  • Aston Villa chairman Nassef Sawiris and CEO Christian Purslow Getty Images

    THE BIGGER PICTURE

    Sawiris, known as Egypt's wealthiest man, has expressed strong opposition to the Premier League's financial rules, deeming them "anti-competitive." In an interview with the Financial Times, Sawiris indicated that he is seeking legal counsel to explore the possibility of a formal complaint. He argues that the current regulations stifle competition rather than promote it, creating a stagnant environment that benefits established clubs at the expense of ambitious newcomers.

  • WHAT SAWIRIS SAID

    “Some of the rules have actually resulted in cementing the status quo more than creating upward mobility and fluidity in the sport," Sawiris opined.

    "The rules do not make sense and are not good for football. Managing a sports team has become more like being a treasurer or a bean counter rather than looking at what your team needs. It’s more about creating paper profits, not real profits. It becomes a financial game, not a sporting game.

    The Egyptian billionaire also criticized the penalties for breaching Profitability and Sustainability Rules as "opaque and seemingly arbitrary," highlighting the inconsistency and lack of transparency in the enforcement of these regulations.

  • DID YOU KNOW?

    Recently, Aston Villa's proposal to raise the Premier League's maximum allowable losses over three years from £105 million to £135 million was rejected. Despite reporting a £119.6 million loss for the last season and maintaining the seventh-highest wage bill in the league, Villa surprisingly insist that they operate within the PSR limits.

    Adding to the controversy, Leicester City have also hinted at legal action against the Premier League for a potential PSR breach. The financial burden of enforcing these rules has become increasingly significant, with The Times revealing that the Premier League has spent approximately £28 million on legal fees related to PSR cases involving Everton, Nottingham Forest, and Manchester City’s 115 charges, along with the associated party arbitration.

    The Premier League is also investigating Chelsea over payments made during Roman Abramovich’s ownership and has yet to approve a transaction involving the sale of two hotels to a related company. The league has declined to comment on these matters, maintaining a stance of silence amid the escalating legal and financial disputes.

  • Sheikh Mansour, jeque, presidente y dueño del Manchester CityImagen: Getty

    WHAT NEXT?

    Since the introduction of financial loss limits in 2013, the Premier League has only recently begun charging clubs with breaches, marking a new era of financial scrutiny and regulation enforcement. These developments reflect a growing tension between clubs striving for financial flexibility and a league determined to uphold stringent financial integrity.

    As the legal battles unfold, the future of financial regulations in the Premier League hangs in the balance. The outcome of these disputes will likely shape the financial landscape of English football, potentially leading to significant reforms in how clubs manage their finances and pursue growth within the competitive framework of the league.

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