Premier League clubs are reportedly considering plans to introduce a spending cap on wages in order to reduce the financial disparity within the league. According to Martyn Ziegler of the Times, the plan would limit how much clubs can spend on wages based on the amount of television money earned by the lowest-placed team in the league. The most prominent proposal suggests that top clubs would be able to spend four times what the bottom-placed club earned, which would have allowed Liverpool to spend up to £402 million on wages in the 2021/22 season. However, this plan only takes into account wages paid directly by the club and does not address additional salaries from sponsors. Additionally, Financial Fair Play (FFP) has been ineffective in preventing the richest clubs from finding loopholes and avoiding punishments. UEFA is set to introduce similar rules that would see clubs only allowed to spend 90 per cent of revenues on wages and transfers in 2023, dropping to 80 per cent next year and 70 per cent in 2025. While these rules may benefit Liverpool due to their higher revenues than most in Europe, they may not be taken seriously if the sanctions for breaking them are not strong enough.
PL Spending Cap Effectiveness
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