EPL clubs agree on squad spending limit
Premier League clubs have tentatively agreed to implement a squad spending cap, pending the formulation of official regulations.
According to Sky News, the proposed cap would tie maximum spending to a multiple of the league’s lowest earner from TV revenue and prize money, though the exact formula is yet to be finalized.
Following a meeting in central London, it was revealed that three clubs—Manchester City, Manchester United, and Aston Villa—voted against the plan, while Chelsea chose to abstain.
Despite this, the proposal could progress to the league’s annual general meeting in June for potential implementation.
One suggested option is to limit spending on transfers and salaries to five times that of the lowest-earning club. For instance, based on Southampton’s earnings of £103.6m last season, this would cap spending at £518m for a single club.
The case of Chelsea highlights the potential impact of such regulations, as they might have exceeded the proposed cap last season.
However, the exact details of what would be included in the spending calculations remain unclear.
A Professional Footballers’ Association spokesperson said, “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.
“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 proposed salary cap is part of a broader shift towards new cost controls, intended to replace the profit and sustainability rules that recently resulted in points deductions for Everton and Nottingham Forest. These new rules aim to address the scale of clubs’ financial losses.
Previously, clubs had supported aligning with new UEFA regulations, which stipulate that clubs participating in European competitions can only spend 70% of their revenue on transfer fees, player wages, and agent fees.
For clubs not involved in Champions League or Europa League competitions, the spending limit would be set slightly higher, at 85% of revenue.
