A KEY component of the Premier League’s Financial Fair Play rules has been banished – encouraging ambitious teams to splash the cash.
Since 2013, Short Term Cost Control (STCC) was implemented to ensure wage bills couldn’t spiral out of control.
The rule demanded teams only grew their wage bill by seven percent per season.
Any further increase had to be offset by extra commercial revenue to prove the club could afford to pay their players.
It meant that teams such as Wolves, Leicester City and Everton, backed by wealthy owners but with little capacity to generate bundles of sponsorship cash in the short-term, were somewhat penned in.
Especially when compared to the likes of Manchester City and Chelsea, who routinely banked larger and larger commercial deals while snapping up the most in-demand talent.
There may now be greater parity, and greater spending, in how clubs invest now STCC is gone.
The start of July heralded the league’s new three-year FFP window and the first without the regulation.
Fundamentally, top-flight teams now need only stay within the existing £105million loss limit over the three-year period.
While this is music to the ears of wealthy upstart clubs looking to break into the elite, those clubs already at the top will be nervously looking over their shoulders.
Latest Football News
In particular, Arsenal are set to endure a difficult summer with funds limited by their lack of Champions League football – and a team in desperate need of improvement.
The Gunners have just £45m in the bank to bolster their options at cental defence, left-back, central midfield and down the wing.
Without the investment of a cash-rich owner such as Everton’s Farhad Moshiri or the Fosun group behind Wolves, and lacking the commercial revenue in Manchester United’s locker, Arsenal may yet yearn for the days of STCC.