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Premier League clubs agree to spending cap proposal

Premier League clubs agree to spending cap proposal
Premier League clubs agree to spending cap proposal

Premier League clubs have agreed in principle on a spending cap tied to TV earnings, with Arsenal voting for the change.

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Martyn Ziegler reported on Monday that Premier League clubs had agreed in principle for a new spending cap to be introduced, with the final decision to be made at an AGM this summer.

Arsenal were among the clubs to vote for the change, with only Manchester City, Manchester United, and Aston Villa voting against it. Chelsea abstained from the vote.

If introduced, the cap would be in effect from the 2025/26 season onwards, limiting the amount of money a club can invest in their squad.

Arsenal's Spanish manager Mikel Arteta looks on during the English Premier League football match between Arsenal and Chelsea at the Emirates Stadium in London on April 23, 2024. (Photo by GLYN KIRK/AFP via Getty Images)
Arsenal’s Spanish manager Mikel Arteta looks on during the English Premier League football match between Arsenal and Chelsea at the Emirates Stadium in London on April 23, 2024. (Photo by GLYN KIRK/AFP via Getty Images)

More specifically, clubs would only be allowed to spend five times the commercial and broadcast revenue of the lowest team in the division.

For an example, The Athletic recently reported that since 20th-placed Southampton earned £103.6m in 2022/23, the cap would have been £518m.

Chelsea would have breached that cap, and Manchester City would have come close to a breach. It’s not hard to see why those two didn’t vote in favour of the proposal.

Manchester City's Spanish manager Pep Guardiola reacts during the English Premier League football match between Manchester City and Arsenal at the Etihad Stadium in Manchester, north west England, on March 31, 2024. (Photo by DARREN STAPLES/AFP via Getty Images)
Manchester City’s Spanish manager Pep Guardiola reacts during the English Premier League football match between Manchester City and Arsenal at the Etihad Stadium in Manchester, north west England, on March 31, 2024. (Photo by DARREN STAPLES/AFP via Getty Images)

Despite Arsenal’s relatively heavy spending in recent years, they would have been £192m below the spending cap if it had existed last season.

This is clearly not a hugely restrictive cap with the game as it currently is, and if it’s paired with other financial restrictions being relaxed, it may actually allow some clubs to spend more freely. But that’s just speculation at this stage.

The change isn’t yet guaranteed to go through, with The Times highlighting that the proposal will now be subjected to a legal and economic analysis. A full vote will then be held in June.