BBC: Premier League clubs divided over whether to introduce new salary cap system

Sports 6:10pm, 17 October 2025 59

According to the BBC, Premier League clubs are divided on whether to introduce the controversial new "salary cap" system, and the proposal will be voted on next month.

The so-called "anchoring rules" (referred to as the TBA model) will limit each club's expenditure on player salaries, agent fees and transfer fees. The total amount must not exceed five times the broadcast rights and bonus income of the bottom team in the Premier League. While piloting this model, the Premier League is also testing another financial control system called "Squad Cost Ratio" (SCR), which allows clubs to use a specific proportion of their total revenue for lineup-related expenses.

The Premier League will hold a meeting on November 21 to vote on whether to adopt one or two new financial models to replace the current Profitability and Sustainability Rules (PSR). Nine of the 20 clubs already need to comply with UEFA's Financial Fair Play Rules (SCR) due to their participation in the European war. Some people believe that unifying these regulations is reasonable.

In order to promote sustainable development, UEFA allows clubs participating in European competitions to spend 70% of their income on team expenses, while the Premier League stated that it can relax to 85%. However, the BBC has learned that many Premier League clubs have stated that they will only vote for SCR if an "anchoring" mechanism is introduced.

Because the expansion of the European war and the Club World Cup bring additional revenue, this makes Premier League clubs more determined to fully implement the new financial policy (TBA). Last year, 16 clubs voted for a detailed analysis, with only Manchester United, Manchester City and Villa voting against. The three clubs are concerned that tying their income to the bottom teams in the league could put them at a disadvantage against some of their European rivals who only have to comply with the SCR.

Taking the 2023-24 season as an example, Sheffield United, ranked 20th, received approximately 110 million pounds in revenue. According to TBA rules, no Premier League club could spend more than 550 million pounds in total expenditure on player salaries, transfer fees and agent fees last season. At the same time, a European club with an annual revenue of 1 billion pounds can have a spending limit of 700 million pounds while only complying with UEFA's Financial Fair Play rules.