European football governing body UEFA is reportedly planning on introducing a cap on player transfers and wages.
The Times report outlines that UEFA’s new proposals for wages and transfers are being assessed by a new working party, while the governing body is seeking approval from the European Union – which would likely need to green light the proposals from a competition law perspective.
The wage and transfer cap, if approved, will work alongside UEFA’s new regulations it recently introduced – the Financial Sustainability Regulation (FSR) – as European clubs will now be forced to spend 90% of their revenue in 2023, 80% in 2024, and 70% in 2025.
The new proposals come amid concerns from UEFA that Premier League are becoming increasingly financially dominant over the rest of European clubs – who have routinely been outspent by English sides, particularly since the Covid-19 pandemic.
European clubs have also indicated that the FSR favours Premier League clubs due to the lucrative TV rights deal the league earns – approximately £6.6bn, over £4bn more than the next league’s highest.
Additionally, 16 Premier League clubs make up the top 30 of the continent’s wealthiest clubs, with six English sides also featuring in the top 10.
UEFA’s transfer cap aims to set a limit on transfer budgets to limit the amount spent on player transfers, wages and agent fees, a model similar to most major US sports leagues such as the NBA and NFL.
Despite a cap limit yet to be finalised, the report reveals that the 70% limit in 2025 shall not be breached.