Premier League clubs vote in favour of spending cap

[Noweimannnocry]

Premier League clubs have agreed in principle to introduce a spending cap.

A majority of clubs voted in favour of the spending cap, which will be determined by the amount of money earned in television rights by the lowest-earning club in the Premier League.

If approved in June's AGM, the new model will replace the current Profit and Sustainability Regulations from the 2025-26 season.

This could be interesting now...

 

[Rabid Wolf]

Premier League clubs have agreed in principle to introduce a spending cap.

A majority of clubs voted in favour of the spending cap, which will be determined by the amount of money earned in television rights by the lowest-earning club in the Premier League.

If approved in June's AGM, the new model will replace the current Profit and Sustainability Regulations from the 2025-26 season.

This could be interesting now...

https://twitter.com/x/status/1784950176488026268

 

[Watfordfc]

No surprise at some of the teams who voted against .

As it probably means they cannot pay the silly wage meaning players won’t come to them .

 

[StaffordWolf]

The only surprise is that Newcastle didn't vote against it!

 

[GoldenHorseshoe]

Let's see how it works and which team is first to find the loopholes.

 

[Wolf in Kenilworth]

Let's see how it works and which team is first to find the loopholes.

Yup

 

[Mile End Wanderer]

If it helps the smaller clubs I’m all for it!

Some restrictions are needed to help compete otherwise it will end up like La Liga. Top 6 sides good quality 7-20th just plodding

 

[Ned]

Always gauge this sort of thing by looking who voted against it. In this case it doesn’t appear to be a bad thing for us.

 

[JamesWolves]

If it helps the smaller clubs I’m all for it!

Some restrictions are needed to help compete otherwise it will end up like La Liga. Top 6 sides good quality 7-20th just plodding

Or that stupid salary cap, correct me if im wrong but isnt that based on revenue. More revenue the bigger your cap. So both Madrids and Barca just have a normal wage budget its stupid

 

[Oh When the Wolves]

Won’t it just help bigger clubs?

Can see lots of transfer requests from players ….

 

[Ogerp]

So based on Southampton last season who had about £100 million, that would equate to £500 million to cover wages.

Or am I missing something?

 

[The Wolf In The North]

Minutes from the meeting.

Aston Villa: "No."
Man Utd: "Excellent! Oh wait, what, us as well? Then no, of course not."
Man City: "Sigh. Dennis, darling, get the lawyers on the phone, they're being silly again."
Chelsea: "Whatever, buddy, we'll get back to ya."
Newcastle: "Smile and wave, boys. Smile and wave."
Nottingham Forest: "Aha ha ha hahaha ha! Speakez No Anglais, love. Oi oi, lager lager LAGER!"

 

[Oldskooldayz]

On initial looks I'm quite liking it, should fosun want to invest a bit then there's scope to put a fair bit in without fear of breaching FFP if I'm reading it correctly. The big clubs are pretty much as you were. I could obviously be getting it completely wrong

 

[WinchWolf]

Won’t it just help bigger clubs?

Can see lots of transfer requests from players ….

Surely it won't if it's capped at 5 times the TV money of the bottom club, it may cause more issues for the top 6, hence why they voted against!!!

 

[VancouverWolf]

Will this cap mean that the big clubs won’t be able to compete against the Saudi league?
If it passes at the AGM, it might make for a very interesting summer transfer window.

 

[Watfordfc]

Let's see how it works and which team is first to find the loopholes.

Got to get it through the AGM.

Will 14 clubs need to approve ?

 

[CelebrityWolf]

If United, City and Chelsea haven't backed it then I doubt it will go through when all is said and done

 

[Eastyorksyeltz]

Have they asked permission from Sky yet?

 

[SingYourHeartsOut]

The only surprise is that Newcastle didn't vote against it!

I don't think so. Trying to work it out, but in terms of PL at least, what does it mean?

Forgive me guessing the numbers and simplifying, but something like....

Man City revenue £800m can currently spend £835m will only be able to spend £500m.
Newcastle revenue £250m can currently spend £285m will now be able to spend £500m.

No idea how it works with the UEFA rules though?

Wonder if PL rules will relate to PL expenditure, I mean it is a bit crazy to expect teams competing in the CL to pay the same as ones in mid-table? All a bit odd at face value.

 

[Timberwolf]

So, five times the smallest club tv revenue?

5 x 103m = £515m

Lol…how does that help smaller clubs

 

[Stafford]

Wonder if this will change Fosun's self sustainability outlook? Will we join the race, or just sit back?

 

[Oldgoldilox]

Devil will be in the detail but on the face of it it could give us quite a bit of extra headroom if Fosun want to invest again.

I never bought the idea that curbing the ambition of disruptor clubs was an "unintended" consequence of PSR/FFP, of course it was. This should help level the playing field.

 

[WickedWolfie]

I don't think so. Trying to work it out, but in terms of PL at least, what does it mean?

Forgive me guessing the numbers and simplifying, but something like....

Man City revenue £800m can currently spend £835m will only be able to spend £500m.
Newcastle revenue £250m can currently spend £285m will now be able to spend £500m.

No idea how it works with the UEFA rules though?

Wonder if PL rules will relate to PL expenditure, I mean it is a bit crazy to expect teams competing in the CL to pay the same as ones in mid-table? All a bit odd at face value.

Put it this way, La Liga will absolutely love this proposal which will massively hamstring English teams in Europe (and over time therefore make our chances of a European place less l fear).

 

[kidder_wolf_II]

I have no idea what this means?

Surely it doesn’t mean the bottom clubs can spunk £500m up the wall each season while only bringing in a max £125m revenue?

How’s that sustainable?

Certainly gives the PL a level playing field if owners want to waste money living the dream. Just hope a few clubs don’t go bost.

 

[purplepault69]

Guess wages will just become a signing on fee for new players and perhaps renew others more often with retainer fee being paid.

 

[northnorfolkwolf]

It's only TV money? Does not apply to all other revenue? Will need to see the detail.
Perhaps the Clubs will vote against VAR now!?

 

[purplepault69]

It's only TV money? Does not apply to all other revenue? Will need to see the detail.
Perhaps the Clubs will vote against VAR now!?

how does VAR impact this ?

 

[YouGottaRaulWithIt]

Wonder if this will change Fosun's self sustainability outlook? Will we join the race, or just sit back?

That is the £500m question. If anything it takes all the excuses out of the way. Fosun could (a) invest and make us competitive... or (b) spend just enough to keep us in the league. My guess is (b).

 

[YouGottaRaulWithIt]

Put it this way, La Liga will absolutely love this proposal which will massively hamstring English teams in Europe (and over time therefore make our chances of a European place less l fear).

If it makes the premier league more open then I am all for it. Fed up with the same clubs winning all the trophies. Real and Barca can buy the champions league if they want. This arms race has to stop or our ticket prices go through the roof.

 

[Dan G WWFC]

Why only 5 times. 3 times or double would be better in my opinion

 

[SingYourHeartsOut]

Why only 5 times. 3 times or double would be better in my opinion

Be crazy though. Tell Man City they bring in £800m but can only spend £300m and have to make £500m profit, which of course they won't for long and they'll soon be losing the the CL group stages.

 

[Perton Wolf]

Why only 5 times. 3 times or double would be better in my opinion

The issue is that the Premier League is self regulating, hence why an independent one is coming in. Shame it'll likely have a big bark and no teeth, as so many industry regulators in this country do.

 

[Fenrir_]

Put it this way, La Liga will absolutely love this proposal which will massively hamstring English teams in Europe (and over time therefore make our chances of a European place less l fear).

Think it's the opposite. Top teams' spending won't be changed too much and they'll still be within the UEFA thresholds, but the rest of the league can go and pinch all of La Liga's best players because they'll be able to pay even more than they can now. Most of them still won't qualify for Europe, but the PL will be a stronger league if sides go out spending (although obviously the threat of administration can and will still loom). Initial impression to me is it's closing the shop that is the PL and making it an even stronger league

 

[Watfordfc]

Put it this way, La Liga will absolutely love this proposal which will massively hamstring English teams in Europe (and over time therefore make our chances of a European place less l fear).

Guess it is understandable that teams might be worried they cannot compete with the best across Europe from their own point of view but they'll probably find a way around it!

 

[SingYourHeartsOut]

Guess it is understandable that teams might be worried they cannot compete with the best across Europe from their own point of view but they'll probably find a way around it!

Yes, while we're at it can we have

Simple counting that's shown in the club accounts
Harmonisation of accounting periods.
Clear sanctions for breaches.
Imposed by the middle of the following season.

 

[WeAreTheWolvesII]

Sounds bad news for us as more competitive teams join the league.

 

[maws]

how does VAR impact this ?

We voted against it but VAR ruled our vote invalid

 

[GoldenHorseshoe]

Always gauge this sort of thing by looking who voted against it. In this case it doesn’t appear to be a bad thing for us.

Do we know the full voting results?

 

[Pagey]

Top teams' spending won't be changed too much and they'll still be within the UEFA threshold

Isn't Uefa introducing 70% of turnover cap? Meaning Man city can spend less than 500 million.

 

[wwbug]

No surprise at some of the teams who voted against .

As it probably means they cannot pay the silly wage meaning players won’t come to them .

The thing is where else would they go ? In the end The Premier League sets the European pace.