Although Liverpool is not in danger of facing penalties for breaking FFP rules, the Premier League is ready to punish competitors who should exercise caution.
Financial Fair Play rules are once again making headlines. Everton has already experienced a point deduction under the Premier League’s Profit and Sustainability rules (PSR), and the other teams in the division are currently awaiting word on whether they will also be subject to penalties.
Eddie Howe has made reference to spending caps on transfers on multiple occasions, and Newcastle acknowledged this week that, in spite of the Saudi financial support that keeps the team afloat, it may need to cash in on a few players to finance other acquisitions. Arsenal, on the other hand, is one of the teams whose spending is limited by its past expenditures. Clubs are permitted to lose up to $134 million (£105 million/€122 million) over a three-year period.
There are others who argue that Newcastle (and everyone else) ought to be free to spend whatever they want, but that would only result in a league with one team. Even Manchester City would be unable to compete with unrestrained riches. That would be disastrous for the Premier League’s competitiveness in the long run.
