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Premier League clubs agree deal for new ‘anchoring’ spending cap

Premier League clubs have agreed a deal in principle to a spending cap system known as ‘anchoring,’ according to The Times.

This system ties a team’s spending to the television earnings of the league’s lowest earner. It aims to create a more balanced competition for clubs in the top flight.

When the option was first brought up, a proposal suggested capping club wages at four or five times the bottom club’s broadcast revenue. 

This would impact the financial muscle of wealthier clubs such as Manchester City and Manchester United, who, along with Aston Villa, voted against the anchoring system. Interestingly, Chelsea abstained from the vote.

United were particularly against it, arguing that ‘improving investment opportunities for mid-table clubs will be a better solution to boost competition’.

The Players’ Football Association (PFA) expressed reservations regarding the new system, highlighting the potential impact on player wages. 

“We’ll wait to see details,” a statement from the PFA read. “But we would oppose any measure that would place a hard cap on player wages. Proper consultation with our members is crucial.”

This marks the first-ever spending cap proposal in the Premier League’s history. The vote now heads to the Annual General Meeting (AGM) for ratification.

After a season defined by problems with Profit and Sustainability Rules (PSR), the addition of more financial rules to cap spending remains puzzling. 

PSR will be abolished from the 2025/26 season, meaning anchoring might be paired with a new spending limit set in March.

Premier League clubs had agreed to tie spending on players to a percentage of revenue last month. This new rule is similar to UEFA’s new financial regulations for European competitions.

The Premier League might start a test run next season before enforcing it from the 2025/26 campaign.

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