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The English Premier League's attempt to remove a loophole that allows clubs to include one-time revenues from their sale of hotels, training sites, and other types of tangible assets within their financial fair play reports has failed.
The league made the suggestion during its annual general meeting in Harrogate, North Yorkshire on Thursday, but only 11 of the 20 clubs supported it, falling far short of the two-thirds majority required for a modification in the English top flight's profitability and sustainability rules (PSR).
The English Football League prohibited its clubs from exploiting artificial windfall gains from property sales in 2021, when half a dozen clubs sold stadiums or training fields to themselves to avoid exceeding the PSR limit on permissible losses. The Premier League thought about pursuing the same step, however its clubs did not support it sufficiently enough to put it up for vote.
This changed this season, as Chelsea avoided exceeding the PSR limit by reselling the two hotels and parking lots at Stamford Bridge to their sister firm for £76.5 million (now $98 million). This proved to be enough to reduce the club's £166.4 million loss during 2022-23 to an £89.9 million deficit.
Premier League set to tighten their Financial Fair Play rules
As a result, it is almost inevitable that the English Premier League is going to try to tighten its plan before handing it again to the clubs, believing that more powers are required to effectively control the clubs in order to promote sustainability and even competition.
But this wasn't the sole vote that the league failed on Thursday, it also failed to pass an amendment requiring clubs to self-report violations of the league's financial regulations. Self-reporting rules are pretty standard in membership associations such as the Premier League, however with trust in the league's competency as a regulator at an all-time low, it's not surprising that this provision was not accepted.