Premier League edges closer to applying £500m spending cap
Premier League clubs have taken another step closer to implementing a spending cap for the first time in the competition’s history.
A majority of clubs on Monday voted in favour of progressing to the next stage of the proposal, which is likely to be voted on at the organisation’s AGM in June.
Further details are yet to be finalised but the spending cap would be a multiple of the portion of Premier League cash allocated to the bottom club – typically around £100m.
The multiples discussed by clubs mean that any spending cap would be likely to be between £400m and £500m a year.
Premier League cap impact
A cap would affect what clubs could spend on transfer fees, player wages, agent costs and amortisation.
The move has broad support but not unanimous backing, with Manchester City, Manchester United and Aston Villa reported to oppose it.
It is just one element of new spending rules which are set to replace the controversial profitability and sustainability rules (PSR) currently in place.
Other changes would see clubs limited to spending a fixed percentage of their revenue, similar to the new system implemented by European chiefs Uefa.
The Premier League would give teams more leeway, however, with the ceiling set to be higher than the 70 per cent figure favoured by Uefa.
While a fixed spending cap is unprecedented in English top-flight football, the change – if approved – is unlikely to affect most clubs’ behaviour.
Players’ union the PFA said it would wait to see further details of the proposals, but had “always been clear that we would oppose any measure that would place a ‘hard’ cap on player wages”.
It added: “There is an established process in place to ensure that proposals like this, which would directly impact our members, must be properly consulted on.”
The PSR is a controversial topic in the Premier League at the moment with both Everton and Nottingham Forest appealing points deductions slapped upon them by the rules.
Both clubs have been told their appeals will have a conclusion by the final day of the Premier League season, on 19 May.