Crystal Palace co-owner John Textor has lashed out at the financial sustainability model of the Premier League, alleging that the system discourages ambitious clubs from putting forth a challenge to the dominance of the top-six teams.

Clubs are dealt with the disk of losing points if they lose over $133 million over a period of three years. They are given the provision of balancing this outlay with the revenue that they generate in the given time period too. "It's clear that they're (PSR) built to make sure that clubs who do not drive significant revenues cannot catch up. Financial fair play is a fraud of a term, to say it's about sustainability," Textor said on Thursday, at the Financial Times Business of Football summit.

"Sustainability should be about the quality of your balance sheet, not ratios against your profit and loss. We have got three billionaires in our ownership group (at Palace). We're not allowed to spend at the level of teams that are in the top six," he added.

Teams can also avoid sanctions if they make investments in youth development, women's football, infrastructure, as well as community work, all of which are ways to balance the losses in accounts. However, it is argued that smaller clubs have few chances to challenge seasoned clubs with bigger fanbases.