Premier League clubs set to introduce a hard spending cap from the start of the 2025-26 season

Premier League clubs set to introduce a hard spending cap from the start of the 2025-26 season

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 Premier League clubs have agreed to continue working on introducing a hard spending cap from the start of the 2025-26 season as part of a new system of financial controls to replace the much-maligned Profit and Sustainability Rules. 

Under proposals to be formally voted on at the Premier League's AGM in June, all clubs' spending on transfers, wages and agent fees will be limited to around five times the amount earned by the top-flight's bottom club in TV and prize money, which was £100.3million for Southampton last season.

Manchester United, Manchester City and Aston Villa all voted against the new system known as 'anchoring' at a meeting in London on Monday, with Chelsea abstaining, but with 16 clubs in favour the new restrictions are expected to be agreed at their end of season meeting. 



While the precise ratio has yet to be determined the new rules are expected to 'anchor' spending to around five times the income of the bottom club, amounting to around £500m.

The clubs have also yet to agree whether the new limits would apply to their entire staff costs or just player wages.



City had the biggest wage-bill in the Premier League last season and spent £51.5m on agent fees, with their transfer bill taking their overall spending to £619.5m, almost six times the income of bottom club Southampton. 

Both Manchester clubs will push for a higher cap in talks over the next few weeks, while the Premier League will undertake detailed legal analysis to ensure that the restrictions cannot be challenge in court under competition law.

The Professional Footballers' Association are also monitoring developments closely and have warned they will opposed any 'hard cap' on player wages. 


The Premier League are likely to argue that the rules do not amount to a salary cap however, as they apply to all spending and the figure can rise every year.

'We will obviously wait to see further details of these specific proposals, but we have always been clear that we would oppose any measure that would place a "hard" cap on player wages,' a PFA spokesperson said. 

'There is an established process in place to ensure that proposals like this, which would directly impact our members, have to be properly consulted on.' 

The Premier League have already agreed to replace PSR rules from the 2025-26 season with a squad cost control, which will limit clubs to spending 85 per cent of their total revenue on wages, transfer payments and agents' fees. 


Source: Dailymail

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