English football is often celebrated for its unique pyramid, where even the smallest clubs can dream of climbing to the summit.
Yet for Ipswich Town CEO Mark Ashton, that dream is becoming harder to achieve.
In his candid assessment, Ashton calls out the financial rules governing both the Premier League and the EFL, describing them as outdated and counterproductive to competitiveness.
Speaking recently, Ashton argued that the current framework not only limits clubs’ ability to compete but also fails to reflect the realities of modern football. From Profitability and Sustainability Rules (PSR) in the EFL to Financial Fair Play (FFP) in the Premier League, Ashton believes the system is no longer fit for purpose.
“ I believe the Financial Fair Play rules need updating, both in the EFL and the Premier League,” he said to talkSPORT’s White and Jordan.
I think they are outdated now and times have moved on. We can talk about new deals between the Premier League and the EFL, and that’s fine, but actually, it needs to be bookended in the EFL because if we simply have a new deal between the two leagues without a bookend, all that’s going to happen is salary inflation, more money to third parties is going to grow.
“So I’d like to see a new deal between the two leagues that protects the pyramid and the relevant rules that sit around that to give us the best chance of sustainability.”
Assessing and dissecting Mark Ashton’s opinion—does he have a valid point? Is the model undermining English football? We take a closer look.
The PSR Squeeze
The constraints of Profitability and Sustainability Regulations (PSR) are a particular pain point. Championship clubs are permitted to lose an average of £13 million per season (or £5 million if the owner doesn’t inject funds to cover the shortfall), a figure that pales in comparison to the vast revenues of the Premier League. For clubs like Ipswich, newly promoted from League One to the Championship, the balancing act is daunting: invest enough to remain competitive without overspending and risking sanctions.
The financial pressures were evident during the January and summer transfer windows. Newcastle United, despite their newfound wealth from a Saudi-led takeover, saw their ambitions limited by Financial Fair Play (FFP) rules tied to existing revenue streams. Meanwhile, Everton and Leicester City faced tough choices—Everton narrowly avoided breaches, while Leicester had to sell star players just to stay compliant.
Parachute Payments and Perils
The parachute payment system, intended to soften the financial blow of relegation, has become another bone of contention. Clubs dropping down from the Premier League are granted substantial payouts to adjust to reduced revenues, but this money often gives them a huge advantage over their Championship rivals.
It’s well-intentioned, but in practice, it creates an uneven playing field. For clubs without parachute money, the only way to compete is to take risks—and we’ve seen how badly that can go.
Clubs like Derby County and Reading have learned the hard way. Both chased promotion with heavy spending but suffered dire financial consequences when their gambles didn’t pay off.
The Path to Reform
As more clubs voice dissatisfaction with the financial model, calls for reform are growing louder. Ashton himself advocates for changes that reflect the modern realities of football while promoting sustainability:
Unified Rules: Aligning FFP and PSR frameworks to ensure consistency across leagues.
Revenue Redistribution: Sharing a greater portion of the Premier League’s immense revenues with the lower leagues.
Revised Parachute Payments: Adjusting the system to prevent competitive imbalance in the Championship.
Modernized Sponsorship Rules: Allowing owner-funded deals under clear, transparent guidelines.
The Future of English Football
For Ashton, this isn’t just a financial debate—it’s about safeguarding the identity of English football.
At its core, the Premier League’s financial model, once hailed as a blueprint for success, now risks undermining the very foundations of the English game. The growing divide between the haves and have-nots threatens competitiveness, sustainability, and the spirit of meritocracy that English football was built upon.
Without reform, ambitious clubs like Ipswich will continue to struggle against an uneven playing field, while the broader football pyramid faces financial instability. A reimagined model—one that rewards ambition, supports sustainability, and narrows the financial gap—is not just a desire but an urgent necessity. The question is whether the Premier League and the EFL are prepared to embrace change before the damage becomes irreversible.
