An introduction of a luxury tax in the Premier League can help smaller clubs challenge the top teams and have equal opportunities, according to MIKE KEEGAN.

‘There’s only one thing Premier League clubs have in common,’ one top-flight executive recently told me. ‘They’re all in it for themselves.’

It should, then, come as little surprise that agreement on a new system to replace the current Profit and Sustainability Rules (PSR) remains, according to another, ‘a million miles off’.

There is, however, one point on which most agree — when these regulations were brought in, nobody thought the likes of Nottingham Forest and Everton would be the victims.

Is this what we want? A league in which those at the top pull up the drawbridge? A lifetime in which the same small number pass the Premier League title between them?

A ‘competition’ where anyone who has the cash to make the dreams of long-suffering supporters come true is stopped in their tracks?

So the ‘luxury tax’ idea revealed by Mail Sport today — where clubs can spend what they want and pay fines if they overspend — would allow those outside the Big Six to have those dreams and, should it be aligned with the ultimate threat of a points deductions (to stop those for whom money is no object) from further distorting the playing field, it could work.

Forest and Everton are not the only ones hurting. A chairman at a cash-strapped EFL club disclosed they had a top- flight team lined up to buy one of their best young players. 

The fee had been agreed and the cash would have gone a long way towards them being able to see out their season without financial fears.

But when news of Everton’s points deduction landed, the offer was taken off the table. The buying club were spooked and the EFL club would have to find another way of making it to the finish line. Bravo.

Premier League insiders are adamant that any new ‘luxury tax’ proposal would retain the threat of what they term ‘sporting sanctions’ — not just fines — and you can see why. 

Removing the ultimate punishment of a points deduction could undermine the whole system, especially for those for whom money is no object. Should the tax come in the feeling is it would effectively make points deductions a thing of the past as the spending wriggle room provided would be sufficient. 

The view would be that only clubs who show an utter disregard and abuse the new landscape would see points docked as a last resort.

Other proposals are also being worked up, including the depressing prospect of ‘anchoring’. Such a system would see the amount of permitted spend tied to that of the bottom club, with 4.5 times also mooted. 

If, as looks likely, Sheffield United finish bottom this year, then would we really expect a Manchester City, whose last accounts revealed a wage bill of around £400m, to only be permitted pay 4.5 times that of the Blades whose figure last season, admittedly in the Championship, was around £48.6m? Bring your trolleys Europe — there are bargains to be had at the Etihad.

On a regular basis a reminder drops that the financial rules are not working. Clubs are hiking season ticket prices as they look for ways to reduce the losses. It can’t be right that fans are having to fork out so clubs can ensure they don’t ‘overspend’.

Earlier this week Tottenham announced losses of £86.8m. They are not alone. With a couple of exceptions — honourable mention for Brighton — the vast majority of Premier League clubs make eye-watering deficits every year. But if they can afford them, or they are temporary, where’s the harm? Tottenham are paying off their stadium, the best in the land. Surely they shouldn’t be punished for that?

There is a growing frustration among some clubs at a perceived lack of leadership and guidance from the Premier League.

Rightly or wrongly comparisons of the current regime and that of Richard Scudamore have been made. The former chief exec would ‘conduct the clubs like an orchestra’ and would almost never put a vote on the table without knowing exactly what the result would be.

A clear, defined position on what would be best for the league.

However, given his ability to read the room, some wondered if Scudamore left because he saw this coming. A league in which self-interest would triumph the collective. 

It remains to be seen where this impasse leaves the so-called ‘New Deal’ and an agreement on financial redistribution to EFL clubs. Some believe the situation is preposterous and, in a free market, capitalist country it is hard to disagree.

The stance is becoming more bullish as time passes. As Mail Sport has previously reported, there is a growing feeling that should government attempt to crowbar a resolution that is unpalatable to Premier League clubs then they will see them in court.

The Premier League would no doubt counter saying that they will explore every avenue before it gets to that stage.

All eyes, then, are on June. No venue has yet been confirmed for the meeting. Given the expected fireworks, it might be an idea to make it al fresco.