Newcastle United and Man City ‘can carry on spending’ as shock new plan revealed – Wyness
Everton’s former chief Keith Wyness has insisted luxury tax in the Premier League would be a “disaster” as clubs like Newcastle United and Man City would have essentially unlimited budgets.
Speaking on the new edition of Football Insider’s Inside Track podcast, the 66-year-old – who served as CEO at Goodison Park between 2004 and 2009 and now runs a football consultancy advising elite clubs – claimed a potential move towards a luxury tax system would “entrench state-owned clubs”.
As reported by the Daily Mail (4 April), the Premier League are considering abolishing points deductions in favour of a luxury tax.
Under the proposal, top-flight clubs could choose to continue spending beyond limitations at the cost of a tax that would be spread between other clubs in the division.
The current Profitability and Sustainability Rules (PSR) only allow sides to lose £105million over three years.
Premier League luxury tax would be a ‘disaster’ as Wyness cites Newcastle
Newcastle are owned by the Saudi Arabia Public Investment Fund, which is reportedly worth £600billion.
Wyness told Football Insider‘s Insider Track podcast: “Luxury tax has been talked about for a long time, it’s not a new idea.
“I think it’s come up again because of the dog’s breakfast we have with the current PSR system. People are scrambling around to come up with other ideas.
“I think a luxury tax would be another disaster.
“If you look at what happens – a club spends £100m over the tax and has to pay out £5m-ish to every other club.”
“That doesn’t help you much when someone else has spent £100m more than you.
“All this would do is entrench state-owned clubs like Newcastle and Man City can carry on spending and spending – letting them maintain a distance to the other clubs.
“I don’t think luxury tax is the answer.”
“We’ve got to search for a better formula, and I’m hoping we can find one. But something has got to be done.
“The owners should have the chance to spend as long as they can show they won’t load the club with debt. If they can, they should be able to invest what they want.”
“Luxury tax has worked in the NBA because there are salary caps and there is no relegation.”
In other news, Newcastle United ready to open talks over midfielder deal.
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