The Premier League have taken the first steps towards dismantling the current Profitability and Sustainability Rules (PSR) by voting in principle to introduce a spending cap for the 2025-26 season.
The current system aimed at preventing clubs from spending beyond their means, which have been in place for the past 11 years, have resulted in controversial sporting sanctions in the form of points-deductions for Everton and Nottingham Forest, with Leicester City under threat of starting next season with a negative tally after being charged with a breach of PSR themselves.
At a meeting today, 16 of the current member clubs of England’s top flight agreed to proceed with plans to limit their individual expenditure to a maximum of 70 to 85 per cent amount of their revenue.
There is also a proposal on the table to cap player salaries to a limit anchored to a multiple of the income of the League’s lowest-placed club.
The two Manchester clubs were joined by Aston Villa in voting against the proposed caps while Chelsea, who could yet be found guilty of being breach of the existing rules for the current financial year, abstained.
A final vote on the measures is set to be taken at the Premier League’s annual general meeting in June.