Premier League Clubs Votes In Principle To Introduce A Spending Cap

Clubs in the Premier League have agreed to a spending restriction in principle.

Chelsea refrained from voting in the latest referendum, while Manchester United, Manchester City, and Aston Villa voted against the revised ideas.

Under the proposed change, top division teams would only be able to spend a certain percentage of their TV budget—that is, the same amount that the bottom club earned.

It is the first time ever a cap would be introduced to the Premier League, and the vote will now go to an AGM before it is potentially passed.

The vote took place in London on Monday, with further discussions over details, including the size of the cap, to be taken before the league holds its AGM in June.

The idea behind the proposals is to ensure the league remains competitive, with clubs set to be assured over the cap not causing any reduction on spending from their current levels.

14 out of 20 clubs need to vote in favour of the cap for it to pass later on this year.

Ultimately, the principle, known as ‘anchoring’, will limit the amount of money any club can invest in their squad.

Based on last season, the key figure would be the £103.6million that Southampton – the bottom club – earned from TV and commercial revenues.

That would then be multiplied by whatever amount is agreed on and everyone else would have to keep their wages, amortised transfer fees and payments to agents below that figure.[CONTINUE READING HERE]