Analysis of the Impact of the Profit and Sustainability Rules (PSRs) on Financial Stability and Competitive Balance of Football Clubs in the English Premier League
Keywords:
Financial Sustainability, Competitive Balance, Premier League, Profit and Sustainability RulesAbstract
The English Premier League adopts the UEFA’s FFP rules either by transposing a set of rules that to prevent professional football clubs spending no more than they earn into the English Premier League's PSRs. In response to the long-term financial stability and the protection of fair competition, as well as the financial discipline in the English football clubs, the English Premier League's fundamentally reformed its strict regime of financial monitoring and sanctions. However, the development of the financial sustainability of the English Premier League and its professional football clubs has the potential profoundly to disrupt the landscape of football business practices. Such key elements of the PSRs aim to take steps to increase transparency and accountability, and to promote financial sustainability. This article analyses the key elements of the PSRs. It also examines the implementation of the PSRs’ rules, specifically in relation to achievement of the financial discipline in the English football clubs and reflects on the framework's adequacy to protect the competitive balance of the English Premier League.
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