Premier League clubs endorse spending cap amid mixed reactions

Premier League clubs endorse spending cap amid mixed reactions

Festus Chuma 19:31 - 29.04.2024

Premier League clubs vote for spending cap despite opposition from Manchester United, Manchester City, and concerns from the players' union.

Premier League clubs have voted in principle to introduce a groundbreaking spending cap.

The decision came after a contentious two-hour meeting among the league's 20 clubs concluding with a consensus to draft new regulations that link spending to the earnings of the league's lowest earner.

Despite the overall agreement, prominent clubs such as Manchester United, Manchester City, and Aston Villa opposed the proposal, while Chelsea abstained from the vote. 

As per The Sun, the proposed regulations suggest that clubs may be restricted to spending between 4.5 and five times the television revenue of the league's lowest-paid club, with Southampton's £104 million from the previous season setting the benchmark. 

Opponents of the measure argue that it could stifle the growth and global competitiveness of the league's top clubs. Manchester City, last season's highest spender with a combined outlay exceeding £600 million in wages, agent fees, and amortization, could be significantly affected.

The Professional Footballers' Association (PFA) has warned that it might challenge the cap, especially concerning restrictions on player wages.

 "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," said a PFA spokesman. 

"There is an established process to ensure that proposals impacting our members are properly consulted on."

The new spending framework is set to be introduced in a "shadow" format next season, with a formal vote likely at the June AGM. 

This shadow period will allow clubs to adjust to a "squad cost ratio" that ties spending on wages and transfers to a maximum of 85 percent of club revenues.

For clubs participating in UEFA competitions, the limit will be more stringent, at 70 percent of their income starting in 2025.

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