Promoted Premier League clubs could be hit with points deductions if they breach proposed £18m salary cap in the Championship set to be brought in from next season
- Planned regulations of £18m salary cap have been sent to all 20 top-flight clubs
- Plans are set to be brought in from next season, should proposals get green light
- There is widespread support from Championship clubs for the proposals
- Cap needs a 66 per cent majority to be signed off at a meeting in the new year
Promoted clubs who breach the Championship’s new salary cap on their way up could be hit with Premier League points deductions.
Sportsmail can reveal that what would be a historic ‘jurisdictional bridge’ is set to be brought in from next season, should proposals get the green light.
The planned regulations of the proposed £18million cap have been sent to each Premier League club for approval and feedback.
Clubs promoted to the Premier League face points deductions if they breach new salary cap
A 41-page document — seen by this newspaper — also discloses that clubs will be encouraged to shop those suspected of breaking the rules.
An ‘Overrun Tax’ will also be introduced which could see those in breach of the cap pay £3 for every £1 overspent to a fund which will then be split between the Championship clubs who have complied.
There is widespread support among Championship clubs — although some do not want the rules to come into play until the end of next season. The cap needs a 66 per cent majority to be signed off at a meeting due to be held in the new year.
Previously, clubs who were promoted but found to have breached existing profit and sustainability rules were only hit with financial penalties, with the likes of Leicester City and Bournemouth reaching settlements many viewed as meaningless. But the new rule would see the door opened for points deductions.
Premier League sides have been asked to state by next Wednesday whether they are in favour of the concept and amount of the salary cap. They have also been asked if they would support the ‘jurisdictional bridge’.
And top-flight sides were asked whether they would support punishments by way of fines for clubs who breach the cap by less than 20 per cent and points deductions for those whose breaches are in excess of 20 per cent.
Premier League clubs have been sent the planned regulations of the proposed £18million cap
The £18m figure includes taxes, signing-on and loyalty fees, image rights, agents’ fees, loan fees and other fees and expenses paid directly to all registered players.
Under 21s are excluded from the cap apart from those brought in on loan. Promotion or cup bonuses, however, would be excluded.
Clubs have been encouraged to report those they suspect of non-compliance. They will have their anonymity protected by the league, unless an arbitral body or court order demands otherwise.
In an attempt to allow Premier League clubs threatened with the drop to protect their assets, players on contracts above £720,000 a year — a divisional average calculated by dividing the £18m by 25 (the number of players in a squad) — will be registered at the £720,000 mark and their contracts can be extended at existing levels of pay should they have less than 18 months on their deals remaining and should their clubs be in receipt of parachute payments.