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Majority of Premier League clubs have agreed for an introduction of spending cap.
Premier League clubs have voted in favour of developing plans to introduce a spending cap, with the model potentially replacing the current Profit and Sustainability Rules from the 2025-26 season onwards.
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Majority Support for Spending Cap
A majority of clubs have voted for the Premier League to conduct the final economic and legal analysis required to create a spending cap model. If the clubs approve the model at June's Annual General Meeting (AGM), it will replace the current Profit and Sustainability Rules.
Manchester United, Manchester City, and Aston Villa voted against the possible introduction of a spending cap, while Chelsea abstained from the vote.
The current Profit and Sustainability Rules allow clubs to lose £105m over a three-season period. However, the rules have faced criticism for favouring clubs with the highest revenue.
Background and Uefa's Financial Fair Play Model
In February, the Premier League was warned by the government that a new football regulator would impose a funding deal on the league if it failed to reach an agreement with the English Football League (EFL). However, no funding deal was agreed upon between the Premier League and the EFL.
Initially, it was anticipated that Premier League clubs would adopt a model similar to UEFA's Financial Fair Play rules, which limit clubs to spending no more than 90% of their revenue on squad costs. This percentage will reduce to 70% from the 2025-26 season.
Opposition to the Plans
Some clubs oppose the idea of a spending cap, arguing that it could penalize clubs with large revenues built through sporting achievement and commercial innovation. Others believe that the proposed spending cap could undermine the competitiveness of English clubs in European competitions.
The Premier League will now develop a spending cap model, with discussions expected to take place at June's AGM. The vote on Monday only concerned the development of a model, not its introduction.
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