The spending cap, also known as anchoring, will limit top teams to spending a proportion of the amount that the bottom club received in TV money. This restriction applies to transfers, wages, and agent fees, aiming to maintain competitiveness in the Premier League and prevent domination by the wealthiest teams.
United, Villa, and Manchester City have reportedly opposed the plans for anchoring, with United citing concerns about the regulations’ impact on English teams’ competitiveness in Europe. However, financial expert Kieran Maguire suggests that their opposition may be driven by a desire to impede the development of their rivals.
Despite the anchoring rules, Premier League clubs could still be allowed to spend over £600 million each season, making them competitive with other European clubs. For example, clubs in La Liga have their own cost control rules, yet it doesn’t prevent teams like Real Madrid and Barcelona from competing in Europe.