The Premier League’s controversial plan to introduce a salary cap

Toby Coxon

The Premier League’s controversial plan to introduce a salary cap image

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The Premier League is on the verge of implementing one of the most significant and controversial economic reforms in its history: a hard spending cap that would radically restrict the financial power of its wealthiest clubs.

Known as "anchoring," the proposal is set to go to a vote in November, pitting the league's ambitious elite against a coalition of mid-table clubs determined to create competitive balance.

If approved, the measure would transform the economic landscape of the world’s richest football league.

The reform is an attempt to address the widening financial chasm that has developed under the current PSR (Profitability and Sustainability Rules), but the plan is already facing fierce opposition, including the threat of legal action from the players' union.

Premier League ball

The £550 million ceiling: what the cap looks like

Under the new "anchoring" proposal, clubs would be restricted to spending no more than five times the amount of broadcast and prize revenue earned by the team finishing last in the Premier League.

Based on recent figures, this spending ceiling would be set at approximately £550 million (€630 million) for total squad costs (wages, transfers, and agents' fees).

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While this figure is currently high, it is designed to prevent the league's richest clubs from pulling away financially in the future, providing a tangible way to curb spending growth.

The proposal requires a two-thirds majority (14 of 20 clubs) to be passed.

Manchester City

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Opposition from the giants and the PFA

The plan has drawn immediate and fierce opposition from the clubs that stand to lose the most financial freedom.

Elite clubs like Manchester City and Manchester United are leading the opposition, arguing that the cap would undermine the Premier League's dominance in Europe.

They contend that restricting spending would make it impossible to compete with European rivals such as Real Madrid and Paris Saint-Germain, who operate without such a cap, risking the departure of global stars like Erling Haaland and Mohamed Salah.

Furthermore, the Professional Footballers' Association (PFA) has voiced strong opposition and threatened legal action.

The players' union successfully challenged the EFL's attempt to impose a salary cap in the lower leagues, arguing that such measures are an illegal restriction on wages and free-market competition.

The battle is now set for November, with the Premier League facing a defining crossroads.

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Toby Coxon

Toby joined The Sporting News in 2025 after completing a degree in Multimedia Sports Journalism. He has previous experience writing for online and print publications including VAVEL, Breaking Media and The Non-League Paper. He also has experience working within football clubs in previous roles at Curzon Ashton FC and Bradford City AFC.