Premier League Clubs Back Plans For New Spending Cap
The majority of Premier League clubs have backed plans for a new spending cap for teams that would replace the existing Profit & Sustainability Rules (PSR).
16 of the 20 clubs voted in favour of the new proposals during a meeting in central London on Monday 29th April. Manchester City, Manchester United and Aston Villa opposed the proposition, while Chelsea abstained.
The prospective new regulations would see the introduction of spending limits on player transfers, wages and agent fees, and would be brought in to replace PSR for the 2025/26 season.
As per the proposals, clubs would be permitted to invest up to 85% of their revenue into their squads, with those that qualify for European football eligible to spend up to 70% on players.
This assimilates UEFA’s new spending regulations taking effect from 2025/26, which will prohibit teams from spending more than 70% of their income on their playing squad. Clubs competing in UEFA competitions are currently allowed to spend up to 90% of their revenue.
Sky Sports reports that new ‘anchoring’ rules could implemented as part of the proposed regulations, which would mean that no club would be allowed to spend more than what the bottom-placed team generates from broadcast revenue.
Calls for a new spending cap come after top-flight clubs Everton and Nottingham Forest were both docked points this season, after falling foul of PSR regulations, which do not allow teams to exceed losses of £105m over a three-year period.
Everton were initially dealt a ten-point deduction in December for breaches relating over the 2019-2022 period, before that was later reduced to six in February. The Blues were recently given an additional two-point penalty for further breaches for the 2022/23 campaign.
Nottingham Forest meanwhile are still awaiting to hear the outcome of their appeal against the Premier League’s four-point sanction that was imposed last month.
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