May 19, 2024

Premier League spending cap: Clubs vote in favor of developing plans

Image source, Getty Images

Comment on the photo, Manchester City has won four of the past five Premier League titles

Premier League clubs have voted in favor of plans to cap spending.

The majority of clubs voted for the Premier League to undertake the final economic and legal analysis necessary to create a spending cap model.

The model will be presented to clubs at the annual general meeting in June, and if clubs vote in favor then, it will replace the profit and sustainability rules currently in place, from the 2025-26 season onwards.

Manchester United, Manchester City and Aston Villa voted against imposing a spending cap on Monday, while Chelsea abstained from voting.

The league's current financial rules, which have seen Everton and Nottingham Forest penalized eight and four points respectively this season, have been criticized for favoring clubs with higher revenues.

What are the current rules?

The Premier League's profit and sustainability rules allow clubs to lose £105m over a three-season period.

The Premier League says the current regulations are designed to try to ensure the long-term financial sustainability of clubs and preserve the competitive nature of the league by preventing “unfair advantages”.

What is UEFA's Financial Fair Play model?

When the idea of ​​moving away from profit and sustainability rules was first discussed, it was expected that Premier League clubs would move towards UEFA's model.

This means that the amount they can spend is limited by the amount of cash they generate.

what happened after that?

The Premier League will now develop a spending cap model.

Monday's vote is only about developing a model, not presenting one.

The Premier League clubs will meet again at their AGM in June, where they can be presented with a Premier League analysis and model.

Discussions will then take place on the model before a potential vote.

Analysis – Simon Stone

The feeling of clubs that have opposed developing cap spending plans is that it threatens to punish teams that have generated significant revenues over years of sporting achievement and commercial innovation.

In addition, by leveling competition within the Premier League, it is felt that there is a risk of undermining the competitiveness of clubs in competition with their European counterparts, which would threaten the standing of the Premier League from a global perspective.