Premier League clubs agree spending cap, likely to start in 2025

Premier League clubs have taken a step towards implementing a spending cap, voting on Monday to support the league in completing the economic and legal analysis required for such a model.

According to British media reports, the model will be presented to clubs ahead of a final vote at the league’s annual general meeting in June at the earliest. It will replace the existing Profitability and Sustainability Rules (PSR) from 2025-26.

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The cap will limit how much money clubs can spend to prevent super-rich teams from dominating the league amid concerns about the growing gap between haves and have-nots.

The cap, discussed at Monday’s Premier League shareholders’ meeting, will be based on the revenue earned by the lowest-paid clubs in England’s top flight from TV rights and could come into effect as early as the 2025-26 season.

The Professional Footballers’ Association (PFA) said: “We will obviously wait to see more detail on these specific proposals, but we have been clear that we would oppose any measure that would impose a ‘hard’ cap on player wages.”

The statement added: “There is an established process in place to ensure that such proposals, which will directly impact our members, are properly consulted.”

Media reports said that 16 clubs voted in favor of the league implementing a salary cap, with Chelsea abstaining and Manchester City, Manchester United and Aston Villa opposed.

Manchester City faces more than 100 allegations of alleged breaches of the league’s financial rules. The club denies wrongdoing.

Everton were docked 10 points in November, which was reduced to six points on appeal, before they received a second deduction for a PSR breach, reducing their deficit to eight points. Nottingham Forest was deducted 4 points and has appealed.

Premier League clubs have agreed in principle to introduce new financial rules next season and voted in April to adopt team cost ratio rules to replace the PSR, which allows clubs to lose £105 million ($131.93 million) over three seasons.

Clubs could be restricted from spending 85% of their income on transfer fees, wages and agent fees if the new rules are passed at the annual general meeting in June.

The PSR will continue next season with a transition period of 2024-25, and points deductions will also continue to be in place, which will also remain part of the new rules once adopted.

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