Major Premier League rule change 'approved' despite Man United, Aston Villa and Man City opposition

Premier League clubs have agreed in principal to new spending cap proposals known as ‘anchoring’.

The anchoring would restrict clubs’ spending on transfers, wages and agents’ fees to a multiple of what the Premier League’s bottom club earned in television revenue. This comes after the Premier League’s Profitability and Sustainability Rules were heavily criticised with Everton and Nottingham Forest each handed points deductions, our sister title Shields Gazette reports.

Newcastle United, who are close to maximum PSR allowance, did not risk any transfer spending in January as they look to avoid a similar fate. The Premier League’s rules are set to change for the 2025-26 season with squad cost controls that mirror UEFA’s FFP rules being introduced. That will see clubs in Europe limited to spending 70% of their total revenue on wages, transfer and agents’ fees while those not in European competitions are able to spend 85%.

According to The Times, clubs are now expected to put forward a vote in principle on an anchoring spending cap at a Premier League shareholders’ meeting in London. Further discussions over the specifics of the cap will take place before the Premier League’s AGM in June. In order to pass, the proposal would need to be supported by at least 14 of the 20 clubs.

Anchoring is said to allow for a more even financial playing field amongst Premier League clubs with current PSR rules argued to benefit the so-called ‘big six’ and make it more difficult for clubs who generate less revenue to progress and compete higher up the division.

In the short to medium term, anchoring could provide a boost to ambitious developing clubs such as Newcastle in the transfer market. Any cap introduced would not cause clubs to reduce their current spending levels.

In practice, the Premier League’s bottom club earns just over £100million in television revenue on average with anchoring caps of 4.5 and six times that figure being reported.

Manchester City spent £620million in total last season, which would have been just less than six times what bottom club Southampton earned in television revenue (£104million). City are expected to be one of the clubs in opposition to the proposal along with rivals Manchester United.

Concerns over anchoring stem from its potential impact on the Premier League’s financial dominance and ability to attract some of the world’s best players with a cap in place.