Six Premier League clubs face having to sell players before the end of June to comply with profit and sustainability rules

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Six Premier League clubs face having to sell players before the end of June to comply with profit and sustainability rules.

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What are Premier League Profit and Sustainability Rules?

The Premier League Profit and Sustainability Rules dictate the amount of money that Premier League clubs are permitted to lose over a specific period. They determine how much these teams can spend on things like transfers, in the sense that each club must toe the line when it comes to balancing income and expenditure.

The rules are not the same as UEFA’s Financial Fair Play regulations, which apply to teams that play in competitions such as the Champions League and Europa League, although there are similarities.

In the simplest terms, Profit and Sustainability Rules — or PSR — allow clubs to lose £105 million ($134m) over the course of three seasons, or £35m per season, on a rolling basis.

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This is on the proviso that £90m is covered by secure funding from owners, such as buying up more shares instead of giving their clubs a loan. The three-year losses allowed without such guarantees are £15m.

These calculations do not include spending on a variety of exempt categories, such as youth development and infrastructure projects. Additionally, after the 2019/20 and 2020/21 seasons were heavily affected by the coronavirus pandemic, the Premier League made allowances for clubs to write off losses suffered as a result of the COVID-19 crisis.

If clubs without secure funding exceed the £15m parameter, they can have their budgets limited and transfers restricted by the league in order to bring their finances back into line.

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