English Premier League takes another step toward introducing a spending cap

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This article was published 29/04/2024 (883 days ago), so information in it may no longer be current.

LONDON (AP) — The English Premier League has taken another step toward introducing a spending cap.

At a shareholders’ meeting in London on Monday, the top-flight teams voted to progress to the final stage of a legal and economic analysis of the “anchoring” principle.

That system would limit — or anchor — the spending by all clubs to a multiple of the combined prize money and cash from TV rights earned by the last-placed team in the league. As a consequence, it would reduce the potential spending power of the clubs with the biggest revenues and richest owners, helping to increase the competitiveness of the league.

Clubs might get the opportunity to vote at the league’s annual general meeting in June on whether to adopt the spending cap, depending on the progress made in finalizing a proposal. There was no official announcement by the Premier League on the matter.

It was widely reported in the British media that Manchester United and Manchester City were among the clubs against a spending cap.

The anchoring principle, if approved, would be part of new financial rules which are set to replace the existing profitability and sustainability regulations from the 2025-26 season.

The current rules, which allow clubs to lose a maximum of 105 million pounds ($133 million) over a three-year period or face sanctions, have been breached by Everton and Nottingham Forest this season. Those two clubs received points deductions as a punishment.

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AP soccer: https://apnews.com/hub/soccer