Why Everton have just voted for salary cap and what it means for future spending

Whoever takes the helm at Everton for the coming years will be faced with a changing financial landscape in the Premier League after another set of proposed changes were agreed upon in principle.

Having been deemed no longer fit for purpose after two separate points deductions were handed out to Everton for two different accounting periods within weeks of each other, the Premier League’s profit and sustainability rules (PSR) are to be replaced from 2025 by a model more aligned with UEFA’s existing squad cost ratio rule.

The new rules, which will still incur points deductions for those in breach, are no longer focused on losses, but instead how wages, amortisation charges, severance payments and intermediary fees stack up as a percentage against operating revenue and player trading profit.

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Those changes were agreed in principle at a Premier League shareholder meeting last month, and this month’s meeting has added another significant development to be voted upon when the AGM comes around this summer.

The idea of a salary cap is something that has been kicked around for some time in English football, with the increased prevalence of American ownership in the English game seeing a move to incorporate some of the financial controls that exist within major league American sport, where salary caps are commonplace across the major sporting leagues.

On Monday the proposals were, as first reported by The Times, agreed in principal among the 20 member clubs, with Aston Villa, Manchester City, and Manchester United all opposed, while Chelsea abstained from