Football

Premier League to set financial tests

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The Premier League is set to get tough on its clubs under new rule changes aimed at providing greater financial clarity and safeguards within the game.

Clubs could be forced to sell their star players and other valuable assets if they fail more stringent financial tests expected to be ratified by the board next month.

Premier League chief executive Richard Scudamore does not believe there will be a situation where a top-flight club suffers from insolvency but he made it clear that sanctions will be taken if any of the elite should teeter on the brink of financial failure in future.

"It's more about putting other sanctions upon them and that will be for the board to decide what the appropriate sanction is," said Scudamore.

"It might be no transfers, it might be forced sale of players, forced sale of assets, there must be other things you can do to keep the club alive, because the most important thing is to keep the club in existence."

Scudamore was responding to a letter in October from Andy Burnham, the Secretary of State for Culture, Media and Sport, concerning finances at, and ownership of, football clubs.

The Premier League have proposed 10 rule changes aimed at tightening the governance of clubs at the highest level.

They want to reduce the risk of another 'Leeds', who collapsed into insolvency after gross overspending in the early part of this decade and were relegated in 2004.

"What happened to Leeds is what should happen to Leeds if you run the club like that," Scudamore added.

"It's tough on Leeds fans. But what these rules envisage is the football authorities getting involved earlier in that process, a bit more interference in that process. Not to prevent it, but to reduce the chance of that happening."

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Topics:
Football
League One
Premier League
Leeds United

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