Premier League clubs have voted to move forward with developing a spending cap model.
Sixteen clubs endorsed proposals for the Premier League to carry out the necessary economic and legal assessments required to establish a spending-cap framework.
This model could be introduced to clubs at the annual general meeting (AGM) in June, and if approved, it would replace the existing Profit and Sustainability Rules (PSR) starting from the 2025-26 season.
Manchester City, Manchester United, and Aston Villa voted against the proposed spending cap on Monday, while Chelsea chose to abstain.
The league’s existing financial regulations, which led to Everton and Nottingham Forest being docked eight and four points respectively this season, have been criticized for benefiting the clubs with the largest revenues.
A spending cap would restrict clubs’ expenditures on transfers, salaries, and agents’ fees.
The proposals under consideration suggest that spending could be limited to between four and five times the amount that the Premier League club with the lowest TV revenue earns.
For instance, Leeds United, who finished 19th in the Premier League for the 2022-23 season, generated the least broadcast revenue among the top flight clubs, amounting to £112m.