ENGLISH Premier League clubs have agreed in principle to introduce new financial rules, voting on Thursday (Apr 11) to go ahead with squad cost ratio rules to replace the current Profitability and Sustainability Rules (PSR), Sky Sports reported.

However, clubs who break PSR will still receive points deductions like Everton and Nottingham Forest did this season.

Everton were deducted 10 points in November, reduced to six on appeal, before they received a second points deduction taking their points deduction tally to eight.

Forest, meanwhile, were deducted four points. Everton and Forest are 16th and 17th, respectively, just outside the drop zone.

Sky Sports said clubs will likely be limited to spending 85 per cent of their revenue on transfers, wages and agents fees.

PSR will still be in place if the new rules are adopted at the Annual General Meeting in June, with a transition period next term.

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Reuters has contacted the Premier League for comment. REUTERS