THE Premier League is the most lucrative football league in the world, with club spending reaching billions every season.
But that number could be reduced very soon, with a new spending cap being discussed by all 20 clubs.
GettyPep Guardiola has won the Premier League five times as Manchester City manager[/caption]
Teams like Manchester City, Chelsea and Manchester United are known for their excessive spending in the transfer market.
The Blues, in particular, over the past 18 months have spent over £1billion on new players since Todd Boehly took over from Roman Abramovich.
And City, Everton and Nottingham Forest have all been slapped with charges in relation to Profit and Sustainability breaches.
But the proposed new spending cap could put an end to such violations.
What is the new Premier League spending cap?
Though clubs still have yet to formally agree, discussion to put through the new bill have been agreed to in principle.
The new rules would anchor the maximum spend by each club per year to a multiple of the league’s lowest-earning team in regards to TV revenue.
The full measures remain to be confirmed by League legal experts.
But it is likely that the multiple being discussed is between 4.5 and five times the TV revenue of the lowest-paid club. Last season, bottom-placed Southampton bagged £104m.
Plans are said to be advanced to the Premier League’s Annual General Meeting (AGM) in June.
A spokesperson for the PFA says they would oppose such measures.
A statement read: “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.”
Should the spending cap plans push through, the 2025/26 season would see the new rules enforced.
GettyChelsea owner Todd Boehly has spend over £1bn since he took over the club[/caption]
Which clubs have voted against the spending cap?
THREE clubs have opposed the plans to introduce a Premier League spending cap.
Those clubs are Man Utd, Man City and Aston Villa. It’s understood that Chelsea have abstained to voting at all.
Champions City spent £423million on wages last season, the most of any team in the league. They also paid agents over £50m, with an ‘amortisation’ sum of annual transfer instalments of £145m.
A cap of 4.5 times the bottom club’s income might have imperilled City and Chelsea last term – although until the full determination of what spending is included in the calculations that does NOT mean a breach would have occurred.
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