Premier League agrees new spending cap – but three clubs vote against ‘anchoring’ approach

Premier League clubs have agreed a deal in principle to introduce an overall spending cap for future seasons.

It is understand that 16 clubs voted in favour of the new guidelines, with Chelsea abstaining and the three dissenting votes coming from Manchester City, Manchester United and Aston Villa.

Utilising a concept referred to as “anchoring” or “tethering”, it is expected that spending on transfers, wages and agents’ fees would be linked to the amount that the league’s bottom clubs receives in broadcast revenue, creating a hard ceiling on clubs’ outflows in these areas.

In principle, the idea is to prevent a further widening of the financial chasm that is increasingly seen between the top and bottom ends of the league. In reality, it might mean that excessive and lucrative sponsorship deals made by the richest club have no additional impact on their spending power, if their income is already over the anchored amount of the least affluent sides.

Clubs have already agreed to replace the current Profitability and Sustainability Rules (PSR) from 2025-26 onwards, with cost controls instead limiting club expenditure on salaries, signing and fees to 85 per cent of total revenue.

The Premier League AGM in June requires 14 of 20 clubs to agree to motions to result in proposals being passed.

More to follow…