Premier League could abolish points deductions and use 'luxury tax' instead as Man City await FFP outcome

A new report suggests Premier League clubs are considering scrapping points deductions and introducing a 'luxury tax' amid fears around profit and sustainability rules.

Back in February, Everton's 10-point deduction for breaches of the Premier League's profit and sustainability rules [PSR] was eventually reduced to six points following an appeal.

A month later, Nottingham Forest decided to lodge an appeal after they were hit with a four-point deduction for breaching the Premier League’s profit and sustainability rules.

The decision to hand Everton and Nottingham Forest a significant points deduction has left many officials to deem the league's profit and sustainability rules 'not fit for purpose', according to a report from the Daily Mail.

In fact, some feel the six-point punishment handed to Everton – as well as the four given to Forest – was 'draconian' and went against why PSR was introduced in the first place.

As well as not being fit for purpose, there are reportedly fears that PSR will hinder the Premier League's position as one of the world's best leagues as it will no longer be able to lure the best players on big salaries.

Such is the concern amongst officials, the introduction of a new system has been discussed, with as many as 17 of the 20 clubs thought to be keen on making significant change.

As stated in the above report, fourteen clubs need to be in agreement to force a rule change.

This new system could be voted in at the end of the season meeting in June.

The report goes on to explain how a so-called 'luxury tax' has been considered, which would mean clubs who overspend will have a financial punishment which would increase based on the more they spend.

If they wish, clubs can then 'choose to press', with the money collected being redistributed to those Premier League teams that have complied with the rules.

It has been discussed that some of the fines could even go into an 'emergency fund' to assist EFL clubs in financial danger.

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In regards to Manchester City's current situation, it has been suggested that the matter will be settled by an independent panel, with a trial 'initially scheduled for the late autumn of 2024'.

City were charged by the Premier League with 'numerous breaches' of financial rules following a four-year investigation.

In a statement, City denied any breaches and added that they 'look forward to this matter being put to rest once and for all'.