- The proposal would see spending tied to the TV money handed to bottom club
- Premier League clubs agreed to undertake a new financial model in the future
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Manchester United are one of a growing number of Premier League clubs strongly opposed to the prospect of an ‘anchoring’ spending cap.
Mail Sport understands that officials at Old Trafford – seeking a rebuild of the fallen giants – are vehemently against the proposal, which would see the amount a side could spend on wages linked to the amount of TV money handed to the club that finishes bottom.
The idea of anchoring is to try and keep a competitive balance within the league and ensure that it remains attractive to broadcasters.
Clubs have agreed to sign up to new protocols to replace the existing, controversial Profit and Sustainability Rules (PSR) that have seen both Everton and Nottingham Forest docked points.
As Mail Sport revealed, one of the proposals is a ‘luxury tax’ which would see clubs fined should they spend more than permitted. Such a tax would give a buffer zone and allow sides that break the rules to swerve points deductions.
However, it is thought that the ‘ultimate sanction’ of deductions would remain as a deterrent should anyone show a blatant disregard for the new system.
United’s stance may well cause a headache for the top flight ahead of a meeting of clubs in London on Monday.
The matter will be high on the agenda and a vote may be taken, should clubs indicate that there is a likelihood of a resolution. Any new rules are likely to come into force from 2025-26, with the upcoming season used as a ‘shadow’ where clubs could see how they would have fared.
Those in favour of anchoring say it would help ensure the league remains competitive and reduce the cliff edge between the Premier League and Championship. They also feel it would lessen the impact of increases in revenues for those involved in an expanded Champions League.
However, a club like United – which posted record revenues of £648.4m last year – may well try to resist a system that they feel unfairly penalises them. Their stance on the matter is being driven by Sir Jim Ratcliffe’s INEOS team following their taking of a 25 per cent stake in the club earlier this year.
Given they control the football side of the operation at Old Trafford, they will be significantly impacted by any new changes as they seek to improve the club’s fortunes on the field via what is likely to be a significant overhaul.
In 2022-23, bottom club Southampton came away with £103.6m. A debate would need to be had on what the subsequent ratio of such a figure would be. The wage bill of champions Manchester City, who posted a league-high turnover of £712.8m, was £422.9m – more than four times what the Saints banked.
Any system of anchoring or a luxury tax is likely to be introduced alongside similar cost controls to UEFA’s new regulations for European competitions in which clubs involved can only spend 70 per cent of a club’s total revenue on wages and transfers. That figure is likely to be increased to 85 per cent should it be adopted by the Premier League.
Top flight clubs have said there will be no agreement over additional funding for the EFL until they agree on rules around their own spending.
