Are we about to see the introduction of a salary cap?

This could have a huge impact on football across the continent 

A controversial new salary cap, which critics say could spell the end of the Premier League as the world’s leading competition, could be introduced as early as next month.

Author | Ajay 

Crystal Palace fans v Liverpool

Top-flight clubs are due to vote on the proposed “anchoring” system, which would restrict any club’s spending to a set multiple of the amount earned by the league’s bottom side in broadcast revenue and prize money. The vote is expected to take place in the coming weeks.

Both Manchester United and Manchester City are understood to be opposed to the measure, which would be implemented alongside the new “squad cost ratio” rules. They argue that such restrictions would damage the league’s global appeal and drive top players away to rival competitions. Others fear it could destabilise the Championship and make life even harder for newly promoted teams.

Manchester United fans v Liverpool

Based on 2023–24 figures, the proposed cap would sit at around £550m, leaving several clubs at risk of immediate breach. Under the plans, a second violation could result in a six-point deduction, with an additional point added for every £6.5m overspent.

READ MORE | This isn't the only proposed rule change at the moment

Opponents warn that the move would prevent Premier League clubs from matching the salaries offered by Europe’s elite, potentially leading stars such as Erling Haaland and Mohamed Salah to join Real Madrid, Barcelona or Bayern Munich. With three of Europe’s five biggest wage payers already outside England, critics say the cap could also accelerate the flow of players leaving the country.

Over time, such an exodus could drive down television revenues and reduce transfer activity between the Premier League and the EFL, with potentially damaging long-term consequences for English football.

What are the perceived benefits?

Liverpool celebrate last season's title

The cap is intended to narrow the gap between the elite clubs and the mid- or lower-table sides, creating a more level playing field across the league. 

By limiting how much clubs can spend on wages relative to their revenues, the salary cap aims to curb excessive financial risk and foster long-term stability.

Get in touch with your thoughts.

This is going to be a rolling story over the next few weeks as the proposal starts to develop and take shape. Please drop us a message on social media and let us know what you think.