Thu 6 Jun 2024, 16:27 · Ash Harrison

Aston Villa's proposal to increase allowable loss limit for PSR shot down but new system will be trialled next season

Aston Villa's proposal to increase allowable loss limit for PSR shot down but new system will be trialled next season
Premier League
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Aston Villa had proposed a change to the current Profit and Sustainability Rules which sees clubs able to make losses of £105m over three-year rolling period.

Those limits have been in place since Financial Fair Play/Profit and Sustainability Rules first came into force in 2013.

Aston Villa tabled a proposal that the limit, which hasn't increased at all in over 10 years should be upped to £130million to account for the massive upturn in transfer fees.

However, remarkably, only Aston Villa and one other club voted for the increase at today's Annual General Meeting meaning the motion did not pass by an overwhelming majority.

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The new rules could be a blessing for Newcastle

New additional PSR rules will be in effect next season

At first, it seemed like an affront to common sense given how every club would have benefited from the increase, but since the initial news broke, it has become more apparent as to why that particular vote went the way it did.

Next season the Premier League will run trials on new rules which will see the current PSR system remain in place, but with Squad Cost Rules and Anchoring also at play in the background.

In short, this will see clubs allowed to spend up to 85% of a club's football revenue as well as net profit/loss on player sales for on-pitch investment.

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The 'Anchoring' proposal will be given a trial next season alongside SCR and PSR

Anchoring will also come into play which was proposed a while back, but for now details have yet to be agreed on specifically how that will work. What it will essentially do is cap the level of spending to be in line with a percentage of the lowest-earning club's income.

When we looked at the Anchoring proposal before we found that it actually works out quite well in Newcastle's favour so we're not overtly opposed to it coming in.

It's going to be interesting to see how all three rulesets will dovetail together if indeed they do at all, and which of the three survives beyond next season.