Inside the Premier League’s proposed salary cap – Man United News And Transfer News

Inside the Premier League’s proposed salary cap – Man United News And Transfer News

Premier League clubs have met to consider an “anchoring” proposal that would tie their maximum expenditure on player salaries to TV rights income. Specifically, player salaries per club will be capped at a figure that would be a multiple of the sum earned as TV rights by the team that finishes the season in the bottom place.

As The Times reports, the exact figure has not been decided, but this proposal is seen as being a realistic measure to finally check the spending gap between the Premier League’s elite, and the rest of the league.

This season, Norwich City finished bottom of the league and earned £100.6m in TV rights income. Under the proposed new rules, this would limit the amount of money every club in the league could spend to a certain multiple of £100.6m.

This could be £100.6m times three or four, or theoretically, any other number the clubs may agree on.

One reason why the proposal is gaining traction is the fear over just how much wider the income gap may grow next season.

Both the Champions League and Club World Cup will be held in new expanded formats that promise more income for the top clubs.

Some critics have also pointed out that if the proposal is approved in its current form, it’s not likely to have a significant effect, since current wage bills tend to already be in reasonable proportions to £100m.

For instance, the club with the highest wage bill last season, Manchester United, had a total salary spend of £384m – less than four times £100m.

Even at this, Man United and clubs with a comparable wage bill are not likely to be too comfortable with any figure that comes close to their current wage bills and if other European countries do not adopt such measures, it might make it hard for Premier League clubs to remain competitive at European level.

While some of the top clubs have been hesitant, support has been forthcoming from elsewhere.

One source said: “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.”

The Premier League’s anchoring proposal comes as UEFA plans to introduce similar cost management initiatives. Under these rules, clubs partaking in European competitions would be required to spend no more than 70 per cent of their total revenue on transfers and wages combined.

The proposal will be debated, again, when the Premier League holds its annual general meeting on Tuesday and Wednesday, with some top clubs said to be against the move.

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