Manchester United and Manchester City reportedly voted against the Premier League’s proposed spending cap, which was discussed at a shareholders’ meeting. The cap, known as ‘anchoring’, aims to restrict top teams from spending more than a proportion of the amount the bottom club receives in TV money. This move is intended to maintain competitiveness in the league and prevent it from being dominated by a few wealthy clubs.
Despite the reported opposition from United and City, an agreement in principle was reached for the introduction of the spending cap. The proposal required at least 14 out of 20 votes to pass, and further discussions are planned before the Premier League’s AGM in June. In addition to the spending cap, the Premier League is set to introduce a squad cost control to replace the current profit and sustainability rules.
This control would prohibit clubs from spending more than 85% of their total revenue on wages, transfer payments, and agent fees. The proposed spending cap has gained support from clubs concerned about maintaining a level playing field and preventing clubs with higher revenues from gaining excessive advantages. There are also concerns regarding the potential spending power of state-backed clubs.
Manchester United expressed concerns that the spending cap could put English clubs at a disadvantage compared to their European counterparts, particularly due to their substantial commercial revenues. However, clubs will reportedly not be required to reduce their spending from current levels. There are ongoing debates about the finer details of the proposed spending cap, including whether it will be linked to total TV income or just the amount the bottom club receives from domestic broadcast deals.
There are also concerns about potential ways that clubs could bypass the cap, such as through offshore payments.