Premier League spending cap: New 'anchoring' rules, which clubs voted against salary and transfer limits explained

Premier League clubs have voted to move forward with a proposed spending cap as part of new financial rules that will take effect from the 2025/26 season.

As reported by The Athletic, the cap would "anchor" permitted spending to a multiple of what the lowest-earning side earns from the division's centralised broadcasting and commercial deals.

The multiple in question is expected to be five times the relevant income of the bottom club after discussions around a multiple of 4.5 found a lukewarm response last year.

According to The Times, 16 clubs voted in favour of the proposals at a shareholders' meeting at The Churchill Hotel in London on Monday, April 29. Manchester City, Manchester United and Aston Villa voted against, while Chelsea abstained.

The proposals are now expected to be finalised at the Premier League's AGM in June along with a new squad cost rule. These new guidelines would replace the current Profit and Sustainability Rules (PSR) from 2025/26.

 What are Premier League Profit and Sustainability Rules?

Using the most recent completed season as an example, Southampton earned £103.6 million in centralised revenues. If the proposed spending cap had been in place, that would have meant an upper limit of £518m.

In the 2022/23 season, only Chelsea — with a combined £539m spent on wages, amortised transfer fees and payments to agents — would have exceeded this mark. Manchester City were next up on £501m. Applying the hypothetical 4.5 multiple to these numbers, City would have been the only team other than Chelsea spending beyond the limit.

Premier League clubs competing in UEFA competitions would also need their numbers to conform to the European governing body's financial rules. Currently, clubs in the Champions League,