THE ability for the Premier League to compete with other top leagues is under threat as fears grow over a new controversial rule.
A new ‘salary cap’ could reportedly be introduced to England’s top-flight NEXT MONTH.
The 20 Premier League clubs will vote on putting a limit on how much one can spend in November.
The Daily Mail have claimed that the rule would see clubs only be able to spend a multiple of the bottom club’s earnings in broadcast revenue and prize money.
Some clubs are very opposed to the potential new system and are concerned it would affect the competitiveness of the Prem.
Both Manchester United and cross-city rivals Man City think it would see the league lost its title as the best in the world.
BALED OUT
Gareth Bale reveals bankruptcy fears despite £120million net worth
Welcome offer
Get a £50 welcome bonus when you join Sun Vegas and spend £10
It has also been suggested that some of the league’s stars would jump ship and leave for pastures new.
Some have also said to be worried that it would make it even harder for newly promoted clubs to compete.
One unimpressed exec said: “This will kill the status as the best league in the world and all the money that brings.
“It feels like we are being sleepwalked into disaster.”
The rule would be known as the “top to bottom anchor” and clubs would only be able to spend FIVE TIMES on their “football squad costs” than the bottom club’s earnings.
This expenditure would include salaries for players and managers as well as the amortisation and agents’ fees.
It has been estimated on the 2023/24 financial figures that a rough limit would be £550m.
This would put clubs at risk of breaching the news rules immediately which could see them face a points deduction.
The report states that clubs could be handed a six-point deduction for a breach as well as an additional points for every £6.5m overspent.
Many think that the proposal could stop English clubs offering competitive wages compared to European giants such as Real Madrid and Bayern Munich.
This could see the likes of Erling Haaland or Mohamed Salah opt for a move abroad.
It could also see the Saudi Pro League gain more leverage in attracting top stars for mega salaries.
As a result the drop in quality could lead to TV revenues being reduced as well as less transfer activity.
United co-owner Sir Jim Ratcliffe has already come out and slammed the idea as “absurd”.
He said: “[Anchoring] would restrict the Premier League’s biggest clubs.
“The last thing you want is for them to be unable to compete with Real Madrid, Barcelona, Bayern Munich or PSG —that’s absurd.
“If that happens, it stops being the best league in the world.”
The rule is proosed to be brought in alongside the curret profit and sustainability rules.
These allow clubs to lose a maximum of £105m over a three-year period.
Clubs have already been presented with a 25-page draft of the proposed rules.
OMAZE-ING
I went from council flat to winning £4m house… But this is why I’m selling up
BOTTOMS UP
Wetherspoons reveals opening dates of 5 new pubs starting next week
A vote is expected to take place on November 21 – though admendments could be made before hand.
14 clubs will have to vote in favour of the new rules for it to be used from the 2026/27 campaign.
Read the full article here