Man City fail in bid to prevent spending cap as Premier League clubs agree to ‘anchoring’

Redaction Willow Austin with Football365
Published on 2024-04-29 15:28:28

Premier League clubs have tentatively agreed to the concept of a spending cap known as ‘anchoring’, despite opposition from the Professional Footballers’ Association. The clubs voted on Monday to proceed with a final evaluation of anchoring, which would potentially limit expenses like player wages, agents’ fees, and transfer costs to a certain multiple of the central Premier League revenues received by the lowest-ranking club.

The purpose of anchoring is to maintain competitiveness in the league by preventing the wealthiest clubs from dominating. The next step involves drafting specific rules around this principle, with a potential vote on the matter scheduled for the league’s annual general meeting in June. Prior to the meeting, sources close to Manchester United had hinted at their opposition, while Manchester City and Aston Villa reportedly voted against it, with Chelsea abstaining.

The Professional Footballers’ Association has expressed opposition to a ‘hard’ cap on player wages but is open to further discussions regarding anchoring. The proposed spending cap would limit club expenditures to approximately five times the TV revenue of the bottom club. Additionally, clubs have agreed to adopt new protocols to replace the existing Profit and Sustainability Rules, which resulted in points deductions for Everton and Nottingham Forest this season.

One alternative proposal to the current Financial Fair Play rules is a ‘luxury tax’, which would penalize overspending clubs with increasing financial consequences. The ongoing legal and economic analysis of anchoring will likely involve negotiations with the PFA to ensure that any measures directly impacting players are properly consulted upon.

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