LONDON – English Premier League clubs have taken a step towards implementing a spending cap, voting on April 29 for the league to complete the economic and legal analysis needed for such a model.
The model will be presented to clubs before a final vote at the league’s annual general meeting in June at the earliest, British media reported.
It would replace the Profitability and Sustainability Rules (PSR) from 2025-26.
The cap would limit how much clubs can spend in a bid to prevent the super-rich teams from dominating the league amid concerns over a growing gulf between the haves and have-nots.
The cap, discussed at an EPL shareholders’ meeting on April 29, would be based on how much money the lowest-earning club in the top flight make from television rights and could come into effect as early as the 2025-26 season.
The Athletic reported “the anchoring” plan will be capped at five times the lowest-earning side receive via the EPL’s broadcast deals.
Official figures for 2022-23 season show the bottom club, Southampton, were paid £104 million (S$177.6 million) in TV money.
The Times said that clubs are expected to be assured that any cap would not cause any of them to reduce spending from their present level.
“We will obviously wait to see further details of these specific proposals, but we have always been clear that we would oppose any measure that would place a ‘hard’ cap on player wages,” the Professional Footballers’ Association said.
“There is an established process in place to ensure that proposals like this, which would directly impact our members, have to be properly consulted on,” the statement added.
However, those in favour of the plans cite increasing Champions League revenue for the top teams and the spending power of state-backed clubs such as Manchester City and Newcastle United as justification for limiting spending to maintain competitive balance.
Media reports said 16 clubs voted in favour of the league pursuing a salary cap, with Chelsea abstaining and City, Manchester United and Aston Villa dissenting.
City face over 100 charges of allegedly breaching the league’s financial rules. The club have denied wrongdoing.
Everton were deducted 10 points in November, reduced to six on appeal, before they received a second deduction to take their points loss to eight for breaching PSR. Nottingham Forest were deducted four points and have also appealed.
EPL clubs had agreed in principle to introduce new financial rules next season, voting in April for squad cost ratio rules to replace PSR, which allows clubs to lose £105 million in a three-season period.
Clubs will likely be limited to spending 85 per cent of their revenue on transfers, wages and agents’ fees if the new rules are adopted at the AGM in June.
PSR will still be in place next season with a transition period in 2024-25, as will points deductions, which will also remain part of the new rules once adopted.
REUTERS, AFP
