Premier League spending cap explained as clubs agree to scrap controversial PSR
Premier League clubs have agreed ‘in principle’ to implement a spending cap from next year onwards.
The new rules, which would come into effect from the 2025/26 season, will replace the current Profit and Sustainability Rules (PSR), which saw Everton and Nottingham Forest receive points deductions.
The proposed spending still has to be approved in a final vote, but with only three clubs – Aston Villa, Man City and Man United – voting against, and Chelsea abstaining, it would appear likely that will happen later this year.
But what is a spending cap exactly" How will it be implemented" And what will Premier League clubs be able to spend on transfers and wages"
What are the new Premier League spending cap rules" The spending cap aims to anchor each club’s maximum amount of expenditure to a multiple of the league’s lowest-earner from TV revenue and prize money.
It will be implemented alongside another new rule, which will see clubs not in Europe capped at spending 85 percent of their revenue on squad costs, while those in Europe will be limited to 70 percent (as per Uefa’s new spending rules).
This limit alone would still allow the biggest clubs to far outspend their poorer rivals, hence why the anchor is also being introduced.
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It is suggested that clubs will be allowed to spend up to five times the amount the bottom club earns. Currently, the bott...
source:
thefootballfaithful-arsenal
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http://thefootballfaithful.com/tag/arsenal/
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