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In a landmark decision, Premier League clubs have voted in favor of a proposal to impose restrictions on spending on transfers, wages, and agent fees. The move, aimed at creating a more competitive league, would limit top clubs’ spending to a multiple of the amount received by the bottom side in television money. The proposal garnered 16 votes in favor, with Manchester City, Manchester United, and Aston Villa voting against, and Chelsea abstaining.
The ‘anchoring’ principle seeks to create a more level playing field by capping spending, addressing concerns about the dominance of extremely wealthy clubs and the potential spending power of state-backed clubs. The proposal comes as the Premier League prepares to replace Profit & Sustainability rules with a new squad cost control regulation in 2025, limiting spending on transfers, wages, and agents’ fees to 85% of total revenue.
The vote reflects fears about the advantages of high-earning clubs and the need for financial fairness. A spokesperson emphasized the importance of proper consultation on proposals impacting players’ wages, hinting at potential opposition to a ‘hard’ cap. The exact details of the spending cap will be discussed at the next Premier League AGM in June, with another vote on the final proposal set to shape the future of the competition and its financial landscape.
Under the new proposal, clubs wouldn’t be required to reduce their current spending levels, making a limit of six times the TV earnings of the bottom club a feasible option. In 2022/23, Southampton, the bottom club, earned £104m from TV money, while Manchester City spent £619.5m, nearly six times as much. The spending cap could help bridge this gap, promoting a more competitive Premier League. As the details are ironed out, fans and clubs alike will be watching closely to see how this new era of financial fairness unfolds.