The Premier League has taken a step forward towards the implementation of a new spending cap which would replace the existing Profit and Sustainability Rules (PSR) from 2025.
This cap will be introduced to limit how much clubs can spend on transfers, being done to ensure that the super-rich major teams from completely dominating the league.
As discussed at a recent Premier League meeting on Monday (April 29), this cap will be based on how much the lowest-earning club in the division makes from television rights – meaning clubs can only get to spend a specific set of amount.
It has been claimed that 16 Premier League clubs voted in favour of this move. The likes of Man City, Man United and Aston Villa dissented and Chelsea abstained in the voting.
As per the existing PSR rules, Premier League clubs will be allowed to spend 85% of their revenue on transfers, wages and agent fees from the 2024/25 season.
