Premier League The clubs have reportedly agreed to introduce a spending cap Manchester United, Manchester City And Aston Villa Voting against the proposal. A vote was taken at a Premier League shareholders meeting on Monday to decide whether to implement the plans in the near future.
The spending cap, known as ‘anchoring’, obliges the top teams to spend a proportion of the amount the following club receives in TV money. This applies to transfer spending, as well as wages and agent fees, with the aim of ensuring that the Premier League remains competitive against the dominance of a few super-rich clubs.
A spending threshold was reached to introduce a deal in principle on Monday The Times. It is said that 14 votes out of 20 were needed to pass the motion, with further discussions due to take place before the Premier League holds its AGM in June.
Three clubs are understood to have voted against the proposal, with United and City joined by Villa in opposing the plans, while Chelsea abstained. The spending cap was introduced as part of a wider overhaul of the Premier League’s financial rules, many of which will come into effect from the 2025-26 season.
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The current profit and sustainability rules will be replaced by the squad expenditure control, which prohibits clubs from spending more than 85 per cent of their gross revenue on wages, transfer payments and agent fees. The proposed spending cap would set a ceiling on that spending with the goal of creating a more level playing field.
Support is said to have drawn from clubs fearing that those with higher incomes would have an advantage over smaller teams. Premier League. It is supported by others who are concerned about the potential spending power of state-backed clubs.
United, which has some of the largest commercial revenues Premier League, is said to be opposed to the proposal due to fears it would put English clubs at a disadvantage to the rest of Europe. however, It is reported Clubs will be assured that they will not be forced to reduce their spending from current levels.
Last season’s official figures show that Southampton, who finished bottom of the league, received £104 million in TV money. A cap of six times that figure would be £624m, but the finer details of its proposed introduction are still believed to be under discussion.
It is unclear whether ‘anchoring’ is linked to total TV revenue or whether the bottom club only receives from domestic broadcast deals. Others are said to believe it should be tied to wages alone, but there are fears clubs will try to bypass the cap through offshore payments in this instance.