For the most part Premier League The clubs voted to explore measures to put a cap on player spending, with only Manchester United, Manchester City and Aston Villa voting against.
Plans for a new “anchoring” concept that would cap the majority of TV revenue generated by clubs at the bottom of the league on wages, transfer fees and agent fees were at the center of a recent meeting of club shareholders. If approved, anchoring would be a key component of the league’s proposed new financial rules, but there is no guarantee a deal will be done.
Sixteen clubs voted in favor of subjecting anchoring proposals to full economic and legal analysis. With three No votes, Chelsea were absent. The motion’s passage gave a strong indication of support for anchoring but confirmed that obstacles remain. Concerns have been raised that anchoring could breach competition law and the players’ union has issued a strong warning over the proposals.
The Professional Footballers’ Association said it was “waiting to see more details” but we have always been clear that we oppose any move to place a ‘hard’ cap on player wages. An established process is in place to ensure that proposals like this, which directly affect our members, are properly consulted on.
The Guardian understands that conversations between the league and the PFA could form part of an analysis to take place next month. Although the figure for the spend has yet to be determined, it is understood to be in the region of four to five times the bottom club’s TV revenue, which was the £103.6m Southampton earned last season. Premier League sources have argued that this is not considered a hard spending cap, as if the league’s revenue grows, so does the headroom on spending.
The league says further details of the rules will be worked out after financial and legal analysis, leaving open the possibility of clubs being allowed to spend more than a set figure offset by sales.
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The Premier League hopes to put a full set of new financial rules to a vote at its AGM in June. The league agreed to move forward with the regulations Limit clubs’ spending on player-related expenses to 85% of their income (or 70% in the case of clubs playing in Europe). These “Squad Cost Ratios” will run alongside anchoring if approved.