Liverpool move to weaken Man Utd and Man City a ‘surprise’ as FSG make ‘forensic’ decision

Redaction Willow Austin with Football365
Published on 2024-05-06 14:36:33

Football finance expert Kieran Maguire expressed surprise at Liverpool’s decision to vote in favor of new Premier League anchoring regulations that could potentially weaken both Manchester United and Manchester City. A majority of Premier League clubs have supported the examination of a spending cap in the top flight.

The clubs voted to progress to the final stages of a legal and economic analysis of anchoring, a principle that could limit expenditure on player wages, agents’ fees, and transfer costs by capping them based on the central Premier League revenues going to the bottom club. The aim of anchoring is to maintain competitiveness in the league by preventing the richest clubs from dominating, with Manchester United and Manchester City reportedly voting against it.

Aston Villa also opposed it, while Chelsea abstained. However, the proposal faces obstacles, including opposition from the Professional Footballers’ Association, which is against placing a ‘hard’ cap on player wages.

Manchester United believes that the measure unfairly penalizes them for their success in revenue generation, commercial innovation, and sporting achievements. They are concerned that leveling competition in the Premier League may weaken English clubs compared to their European counterparts and undermine the league’s global competitiveness.

If approved, anchoring would be part of new squad cost control measures to replace existing regulations starting from the 2025-26 season. The clubs have already supported squad spending caps linked to revenue as a key principle. Additionally, Premier League clubs are expected to limit their squad-related costs to 85% of revenue.

Despite imposing spending limits on aspiring clubs, anchoring would create a ‘hard’ ceiling for the biggest and richest clubs without considering their revenue. Maguire acknowledged that Liverpool’s decision was in their best interests, given their revenue generation compared to Manchester United and Manchester City. The detailed decision-making process of Liverpool’s ownership group, FSG, was also highlighted.

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