This article contains affiliate links, and we will receive a commission on any sales generated from it. Sir Jim Ratcliffe, the co-owner of Manchester United, reportedly opposes a proposed new rule that would link a team’s wage spending to the TV money earned by the Premier League’s bottom side over a season. This rule change is intended to maintain a competitive balance in the league and prevent a steep financial drop-off between the Premier League and the Championship.
The proposed wage cap figure would be set at five times the revenue of the bottom club, which was £103.6 million for Southampton last season. This potential change is set to be an important topic when Premier League clubs convene in London on Monday. It has been revealed that United’s strong opposition to the proposed rule change is being led by Sir Jim and his INEOS team.
If implemented, this rule could limit the flexibility of the club’s wage spending as they strive to return to the top of English football. While these potential rule changes are not expected to take effect until the 2025/26 season, there are also new guidelines being considered, including a ‘luxury tax’ that would replace the Profit and Sustainability Rules (PSR) and increase the likelihood of fines for violators instead of points deductions. Under the new guidelines, points deductions remain a possibility for teams that completely disregard the rules, with potential cost controls similar to UEFA’s regulations being considered.
Sir Jim is preparing for his first summer at Old Trafford after taking control of United’s sporting operations from the Glazers, with the team bracing for a significant financial hit if they miss out on Champions League qualification, which seems likely based on their current league position.