In the recent trend of the Premier League, the financial rules of the tightening of the Edgbaston and Nottingham Forest tasted the bitter fruit. However, this summer, the originally expected club "explosion" crisis does not seem to come as expected. Chelsea, Aston Villa and other clubs have shown determination to transform. Just when everyone thought that the "loophole" will continue to expand, the Premier League Chief Executive Masdarth's comments seem to announce the end of the "profit and sustainable development regulations".
According to Premier League rules, clubs are not allowed to make a total loss of more than £105 million over the past three seasons. However, there are many ambiguities in the accounting standards. For example, transfer fees from the sale of young players are counted as "immediate profit", while the cost of bringing in players is calculated separately according to the duration of the contract. This has led to some clubs cleverly taking advantage of the "gray area" to "buy each other's youth training".
Villa purchased a luxury car for £37.5 million this summer while developing Ian Matson; Villa also acquired Villa's 18-year-old starlet Killyvan for £19 million; and Villa purchased Ewarton youngster Durbin for £10 million before selling him to midfielder Iluigbunan for £9 million to move to Ewarton. This series of high-priced youth deals managed to set a new record for the Premier League.
In response, Premier League chief executive Mastas said, "Our role is to ensure that clubs comply with the rules and each club has its own financial planning. We are not concerned with the specifics of the planning, only that the results are in line with the rules."
