Premier League agree to new spending cap: what does it mean? | OneFootball

Premier League clubs have voted in favour of a new spending cap which will come into affect from the 2025/26 season.

Sixteen clubs approved on proposals which will now see the Premier League complete the final analysis needed to create the spending-cap.

If voted through, the new model would replace the current Profitability and Sustainability Rules (PSR) from the 2025/26 season.

Manchester City, Manchester United and Aston Villa all opposed the potential introduction of the spending cap, whilst Chelsea abstained.

The current PSR rules have been criticised for favouring clubs with the highest revenues, with Nottingham Forest and Everton both being deducted four and eight points respectively this season for breaching the rules.

The spending cap would limit clubs’ expenditure on transfers, wages and agents’ fees. Spending would reportedly be capped between four or five times the amount the lowest-earning Premier League club receives in TV revenue.

The current PSR rules permit clubs losing £105m over a three-season period, with the current rules in place to ensure the long-term financial stability of clubs.

Ange Postecoglou speaking on the Premier League’s new financial rules at the start of the month.

What next?

The vote was on the development of a spending-cap model, not the introduction of one, but the Premier League will now work on said development.

Premier League clubs meet again in June’s annual general meeting (AGM), where they could be presented with the Premier League’s analysis and model.

The proposed spending cap would allow the likes of Newcastle and Nottingham Forest to spend amounts they feel they need in order to be competitive, but it could also push teams to financial breaking point.