Premier League spending cap could affect transfer plans

NEW LIMITS?: Premier League plans to impose new spending limits could affect how clubs approach this summer's transfer window. File pic: PA

Premier League plans to impose new spending limits could affect how clubs approach this summer's transfer window.

The 20 clubs in England's top flight will meet for their annual review on Tuesday and Wednesday this week in Hampshire. And one of the items on the agenda will be a spending cap that links player wages to the position a club finishes in the table.

The measure would be designed to improve competitiveness within the league and attempt to reduce the gap between sides earning additional review from European football and the rest. 

The UK Times on Monday revealed details of the proposal, referred to as "anchoring".

One source told The Times: “This is a very clever concept because it is an adjustable spending cap which is tied to the lowest club’s TV payment. It is also being seen as a safety measure.

“There are lots of worries about what will happen when the new Champions League format begins next year — it looks as though there will be a lot more money for those clubs involved, as well as for those clubs in the new Club World Cup.

“There is already a big financial gap and it is likely to get bigger. The strength of the Premier League has been its competitiveness and unpredictability and this proposal can help maintain that.”

Some clubs are not in favour of the measure, the paper reports. 

English clubs earned between £70 million and £115 million from the Champions League this season, while Manchester City and Chelsea have already qualified for Fifa’s 2025 Club World Cup as Champions League winners in the past three seasons. The new competition is expected to bring in at least £30 million per club.

Club sources say the proposal is being “seriously considered” but there are also other options the Premier League may look at to achieve better competitive balance. 

Uefa is also working on a spending cap on player wages and transfers, though the proposal is opposed by the players’ union, Fifpro.