Premier League,
Monday, 29 April, 2024
Premier League clubs have agreed in principle to implement a spending cap after receiving majority support with a final vote expected in June.
The clubs have tentatively agreed to put a limit on how much money they can spend, with the cap based on how much money the lowest-earning club in the league makes from television rights.
According to the Athletic, the measure was discussed at the English top flight’s shareholders meeting in London on Monday, adding that the cap can come into effect as early as the 2025-26 season.
There were 16 clubs that voted in favour of the new guidelines, with Chelsea abstaining and Manchester City, Manchester United and Aston Villa dissenting, the Independent reported .
Premier League clubs had agreed in principle to introduce new financial rules next season, voting in April to go ahead with squad cost ratio rules to replace the current Profitability and Sustainability Rules (PSR).
Clubs will likely be limited to spending 85% of their revenue on transfers, wages and agents fees if the new rules are adopted at the Annual General Meeting in June.
PSR will still be in place next season with a transition period in 2024-25, as will points deductions, which will also remain part of the new rules once adopted.
Everton were deducted 10 points in November, reduced to six on appeal, before they received a second deduction to take their points loss to eight for breaching PSR. Nottingham Forest, meanwhile, were deducted four points.
