At a meeting yesterday (29 April) Premier League clubs voted in principle for new spending rules to come into effect for the 2025/26 season.

The new proposed rules, should they be approved in June at the Premier League Annual General Meeting (AGM), will replace the current Profit and Sustainability Rules (PSR), looking to add a spending cap for all clubs based on total revenue as well as an ‘anchoring’ restriction to create a fairer and more competitive league.

With clubs like Everton and Nottingham Forest being punished this season under the current rules, clubs have been outraged and confused about not only the rules, but the punishments handed out, pointing to a lack of consistency.

Following this feedback, the league has looked at several changes that could be made to enhance the league, with a proposed new set of rules voted in principle for the 2025/26 season.

Although some details are yet to be clarified, clubs not in Europe would be allowed to spend 85% of club revenue on squad costs, involving  players’ wages, amortised transfer fees and also agent fees. Whereas clubs that are in Europe would be allowed to spend a maximum of 70% on squad costs.

This aims to create a fairer system, rewarding clubs for revenue rather than restricting them, which happens under the current PSR guideline – a club must not spend over £105m over three seasons, no matter its revenue.

However, to ensure competitiveness the league has also added another detail, anchoring. This feature means all clubs would only be able to spend a maximum of the multiple of what the bottom club earns in TV revenue.

If implemented this season, the bottom club would receive £103.6 million. Assuming the anchoring multiple, which is still pending confirmation, is set at 5, the calculation would be £103.6 million multiplied by 5, resulting in a £518 million cap on spending, which includes player transfer fees, player wages and agent fees. .

Looking at the vote, Manchester United, Manchester City and Aston Villa were the only clubs to vote against whilst Chelsea abstained from the vote. Unsurprisingly, these clubs bring in huge revenue totals and no doubt feel that the anchoring restriction would hinder their ambitions to compete further.

One aspect of all these clubs that will have to drastically change under the new rules is wages, something Chelsea and Manchester United have relied on in recent years to attract important players from across Europe.

Looking forward, clubs like Brighton, Bournemouth and Brentford may shine under the new format due to navigating the transfer market well, while keeping wages at a minimum. As mentioned above the bigger clubs will have to radically change approaches and sell big stars before the rules come into place.

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