Premier League clubs are set to vote on the introduction of a new spending cap for the 2025-26 season. This proposed hard spending cap aims to level the playing field and enforce a shift in the perceived power base of English football. The cap is based on the concept of “anchoring,” which limits the amount of money clubs can invest in their squads by tying it to a multiple of what the lowest earners receive from the league’s centralised broadcast and commercial deals.
This hard cap goes beyond the UEFA-mirroring new squad-cost rules that clubs will vote on in June. The new rules allow squad spending to be based on a ratio of revenue and player sales, addressing concerns about competitive balance. However, the proposed hard cap would bring greater clarity and transparency, ensuring that all clubs play by the same rules.
For years, the super-rich clubs like Manchester City and Chelsea have dominated the Premier League, seemingly having things their own way. These clubs have faced allegations, but unlike Everton and Nottingham Forest, they have gone unpunished. The introduction of a hard cap may not sit well with these clubs, but many supporters outside their fanbases would welcome it.
The sustainability gains of a hard cap may require slightly reduced salaries for players, but it could prevent other clubs from suffering financial difficulties like Everton. Everton’s misguided spending spree under owner Farhad Moshiri has left them in a precarious position. The introduction of anchoring back in 2016 when Moshiri took over could have prevented their current predicament.
So, why has this wider ethical concern won out over self-interest? The answer lies in new mutually-beneficial alliances and the Premier League’s broadcast revenue sharing system. While the sharing ratio is not a major concern for smaller clubs like Everton, West Ham, and Crystal Palace, these clubs worry about the consistent advantage that the big six clubs (Manchester City, Chelsea, United, etc.) have gained from participating in European competitions.
The new Champions League format and the upcoming Club World Cup will only widen the gap between the Premier League’s haves and have-nots. It took a united front from the top flight’s minnows, middle-class clubs, and even some of the elite to push for anchoring. U.S.-owned clubs like Liverpool and Arsenal may endorse a North American-styled salary cap system to rein in their common foe, Manchester City.
If Manchester City continues to dominate English football by retaining their Premier League title, the hope from rivals is that a hard spending cap will loosen their grip on success and level the playing field. However, the proposal still faces challenges. The Professional Footballers’ Association (PFA) will have a decisive say, and if footballers strongly oppose pay cuts, the whole deal could be in doubt.
The introduction of a hard spending cap represents a small but significant change for the Premier League. However, it ultimately depends on the players on the field who could potentially stop it in its tracks. Until then, anchoring remains a tantalizing notion for a potentially fairer game and a rare moment when the super-rich clubs are made to contemplate the fact that not everything will always go their way.