On Monday 29 August, the Premier League clubs will vote on a spending restriction. In that case, it will be the first time that a ceiling is introduced on what clubs are allowed to spend on transfers, salary expenses and agent fees.
Will ensure competitiveness
The aim is to ensure that the league remains competitive rather than being completely dominated by the richest clubs. There are already big differences between the top clubs and those lower in the table, and the new Champions League format being introduced in the autumn will ensure more money in the coffers for the teams that qualify, and could give a big advantage over the smaller teams.
A first vote is expected during today’s shareholder meeting in London, and further discussions about details will then take place before the annual general meeting in June.
For the proposal to be approved, 14 votes are needed out of the 20 clubs that vote.
Last season, Manchester City had the biggest expenditure on wages, at £423m, and they spent £51.5m on agent fees. City is expected to oppose the proposal, writes The Times. So are Manchester United’s new owners, Sir Jim Ratcliffe and his INEOS, while the Glazer family, who are the majority owners, should be positive.
Liverpool is most likely to be positive about the proposal. In a 2023 interview with the Liverpool Echo, John W. Henry said he welcomed tighter restrictions.
– There are ever-increasing financial challenges in the Premier League. It is an exceptionally successful league and the best football league in the world, but we have long thought that spending limits should be introduced so that the league does not follow in the footsteps of other European leagues where a couple of clubs have little competition.
– The tension in the league is about competition and that is the most important component of the Premier League.
Chelsea also had the second highest wage bill last year, with £404 million, and Liverpool in third place with £373 million.
