Premier League clubs are planning to introduce a spending cap to reduce the gap between financially strong and weak clubs, as reported by Der Spiegel. This initiative, which still needs to be approved at the annual general meeting in June, aims for the cap to come into effect from the 2025/26 season.
The existing rules on league profitability and sustainability, which tied club spending to their revenue share, are set to be replaced by this cap. Criticism of the old rules came from clubs with lower incomes who felt disadvantaged.
The new cap would be based on the TV revenue of the financially weakest club. In the last season, according to calculations, this cap would have been at £518 million, five times the TV revenue of Southampton, the bottom club in this regard.
Top clubs like Chelsea and Manchester City, who spend significant amounts on salaries, transfers, and agents, would need to reduce their spending accordingly.
However, the idea is not met with universal approval. It aims to ensure that wealthy clubs cannot continue to poach players from smaller clubs, which intensifies concerns about an even greater gap in the league.
Manchester City and Chelsea are already under scrutiny for their financial policies, with revelations suggesting they have breached financial rules.
Some clubs, especially those with lower incomes, support the idea of a spending cap, while others, including Manchester United, Manchester City, and Aston Villa, have voted against it or abstained.
The final decision on the model rests with the Professional Game Negotiating and Consultative Committee, which consists of unions, the association, the Premier League, and the English Football League. The union has already expressed concerns, particularly about strict caps on player salaries.
