Premier League ‘agrees new rule change’, leaving Man Utd and Man City outvoted
Premier League clubs reached an agreement on the introduction of a spending cap despite opposition from Manchester United, Manchester City, and Aston Villa. The cap, known as ‘anchoring,’ will limit top teams’ spending to a proportion of the amount received by the bottom club in TV money, including transfer fees, wages, and agent fees. The aim is to maintain the competitiveness of the league and prevent domination by a few wealthy clubs.
The proposal received support from 14 out of 20 clubs at a recent meeting, with further discussions scheduled before the AGM in June. The current profit and sustainability rules will be replaced by squad cost control, prohibiting clubs from spending more than 85% of their total revenue on wages, transfer payments, and agent fees. The proposed spending cap aims to level the playing field, receiving support from clubs concerned about larger teams’ revenue advantages and potential spending power from state-backed clubs.
Despite opposition, clubs with high commercial revenues, like Manchester United, have been assured they will not be forced to reduce their current spending levels. Discussions continue on whether the spending cap will be linked to total TV income or just the amount received by the bottom club from domestic broadcast deals, with concerns about potential loopholes via offshore payments.
