Premier League clubs could be hit with a spending cap (Getty)
Premier League clubs have provisionally agreed a spending cap for the first time in the top flight.
The proposed spending cap would mean that all teams in the Premier League would see their outlay on transfers, wages and agents restricted in proportion to the amount that the bottom club receives in TV money.
It’s understood that Manchester City, Manchester United and Aston Villa voted against the new rule, while Chelsea abstained.
The vote will now go to the Annual General Meeting (AGM) in June and 14 clubs will need to vote in favour in order for the new rule to be passed.
If approved, the new model will replace the Profit and Sustainability Regulations and will begin from the 2025-26 season onwards.
Sir Jim Ratcliffe is understood to have concerns over a Premier League spending cap (PA)
How would a Premier League spending cap work?
Based on last season’s figures, Southampton, who finished bottom of the table, were paid £103.6 million from their share of the Premier League’s from TV and commercial revenues.
That figure would then be multiplied by the number that is agreed by the Premier League clubs. All 20 teams would then need to keep their wages, amortised transfer fees and agents fees below that figure.
If the multiplier of five is used, which was part of the initial proposal, the spending cap would be £518m.
Which teams are opposed to the Premier League spending cap?
It’s understood that Manchester United, Manchester City and Aston Villa voted against the proposal at a meeting in London in April.
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Which teams would have gone over a Premier League spending cap this season?
Chelsea’s £539 million spend on wages, amortised transfer fees and agents fees would have seen them go over the hypothetical £518m spending cap, if it was introduced for last season.
Manchester City, who spent £501m, would have fallen just under the spending cap.
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