Premier League clubs have agreed to set a spending cap in the future in the English championship, British media reported on Monday, a way of containing the big gap between the powerful and the less fortunate.
Adopted by a majority
The measure, adopted by a majority of first division clubs, will still have to be ratified during the next general assembly of the Premier League, in June, in order to come into force from the 2025-2026 season. Defending champion Manchester City, its neighbor Manchester United and Aston Villa voted against the proposal, while the big-spending club Chelsea abstained, detailed British media, including Sky Sports.
The “spending cap” is intended to replace the profitability and viability rules (PSR) currently applied by the Premier League, and for which Everton and Nottingham Forest have been sanctioned this season. The spending ceiling (salaries, transfer fees, fees paid to agents, etc.) will be calculated based on the television rights received by the worst-off club.
This system called “anchoring” will be capped at five times the amount the lowest-paid club receives under Premier League broadcast deals, according to The Athletic. For example, last season’s bottom side, Southampton, received nearly €122 million (£104 million).
According to the Times, clubs should be given assurances that no cap will force them to reduce their spending from their current level. Everton and Nottingham have been penalized with a withdrawal of points this season for having violated the current rules of the PSR, a sort of English “financial fair play”. Clubs cannot lose more than £105 million over a three-year period. A number of other clubs are close to crossing that limit, leading to a massive drop in spending in the January transfer window.
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Supporters of the “spending cap” highlight the increase in revenue from the Champions League and the financial power of clubs supported by states, such as Manchester City and Newcastle, to respond to those who denounce a future weakening of the Premier League, the richest and most watched championship in the world.
