Leicester City could be at £35m disadvantage if new financial rules kick in

The likes of Leicester City will be at a disadvantage compared to clubs which regularly qualify for the Champions League under new financial rules proposed by UEFA.

That’s according to football finance expert Kieran Maguire, who has assessed the impact of new regulations, which would replace the current Financial Fair Play (FFP) rules if implemented. The new rules, first reported by the New York Times, would be brought in the following season from the point of approval, but with a three-year grace period.

Speaking on his popular Price of Football podcast, Maguire described the changes as a “soft wage cap” and believes it will only serve to maintain the current status quo in the game. “We’re not going to go to the NFL-style, where, say, you’re given a limit of say 180 million dollars to spend on wages,” he explained.

“It looks as if 70 per cent of your turnover can be paid out in wages and amortisation. I immediately plugged these numbers into my spreadsheet and I think only Spurs of the current clubs in the Premier League would satisfy those rules.

“Is this going to result in a significant change in terms of a reduction of spending? I think that’s what UEFA would like. What’s going to happen in terms of player sales, sponsorship arrangements, because now you’ve got to generate more money?

“What’s the practical issue? If you are a club who is presently in the Champions League, you’re going to have a huge competitive advantage over those ambitious clubs, the likes of Villa, Newcastle under the new owners, Leeds, West Ham, clubs that want to break into the ‘big six’.

“They’re going to find it very difficult because, if you are in the Champions League, you’re getting an extra £50million compared to your Premier League