The Premier League has decided to extend its current financial fair play system for one more season, despite plans to change it at the end of this campaign. This move leaves the finances of clubs like Manchester United in uncertainty.

How Does the Current System Work?

At present, clubs are allowed to report losses up to £105 million over a three-year period. The new regulations, which were set to take effect, proposed two key changes:

1. Spending Cap: Teams could only spend 85% of their income on wages, transfers, and agent fees.
2. Big Clubs Spending Limit: A cap on spending would be introduced for the top clubs, equal to five times the income of the team with the smallest share of prize money and broadcasting rights.

Reasons for the Delay

• The Professional Footballers' Association (PFA) is opposed to the new rules and may veto them, arguing that they were not consulted, despite the fact that the changes would directly impact players.
• Manchester City is still locked in legal battles with the Premier League over associated company rules, which govern transactions between clubs and businesses owned by the same entity.
• According to The Times, clubs feel it doesn’t make sense to implement a new system until these legal disputes are resolved.

An Outdated System

The current financial fair play rules were introduced in 2013 and have not been adjusted to keep up with inflation and the changing football market. Clubs like Manchester United, Leicester City, and Aston Villa have been on the brink of breaching the rules. Moreover, the existing system makes it harder for mid-tier clubs to invest, widening the gap between them and the league's giants.

For now, the Premier League will continue with the current system, delaying reforms that could dramatically shift the financial landscape of English football.