Tottenham: Ange Postecoglou issues verdict on 'luxury tax' over points deductions

Premier League clubs are reportedly considering binning points deductions in favour of a luxury tax, similar to the model used in American sports
Dom Smith5 April 2024

Tottenham manager Ange Postecoglou says he would be sceptical of any plans to limit the difference in spending power between Premier League clubs with a ‘luxury tax’ as it could “demotivate” clubs from striving for excellence.

Reports on Thursday claimed Premier League clubs are considering a replacement for the current points deduction-based punishments which have seen Everton and Nottingham Forest docked points this season.

Such report suggest an alternative ‘luxury tax’ system, whereby clubs would be handed fines proportional to the extent to which they have overspent according to Profit & Sustainability Rules (PSR).

Postecoglou said: “I come from a world where it has been very, very regulated. ‘Equalisation’ in Australia, like it is in American sports, is very, very big. So I’ve come from that world. I didn’t like it one bit.

“There’s always an understanding that you’ve got to create some kind of competitive balance between clubs and there isn’t too much of a divide between clubs who can spend at random at times, compared to clubs who have restrictions. You want to keep that balance, but I’ve always felt: not at the expense of demotivating people from being the best that they can be.”

Postecoglou added: “Sometimes I’ve felt — like in Australia, we’ve had a salary cap, and a bit similar to what they’re calling ‘luxury tax’ — it keeps the competition even but I also felt it supressed the ability to try to be better than the rest.

“America is kind of similar. Whatever model they come up with it’s that balance of keeping it competitive because you do want competitive leagues, you don’t want teams just spending to win things, but at the same time you don’t want to suppress that ability for excellence. I’ve always said it’s not just about having money, it’s how you spend it.

“If I have half the money someone else does, if I spend it better then I can still beat them. So it’s that balance.”

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