The Premier League’s PSR rules, which allows clubs to lost £105m over a three year period – has come in for increased scrutiny in recent seasons.
Wolves are one club who have had to move players on and work in the transfer market to avoid breaching the rules – while Villa have also had their issues with PSR.
Some clubs have been sanctioned for breaking the rules – while others have been critical of how much the rules aid the top clubs in the league.
The Premier League has been looking at potential changes – and next month clubs are set for a vote on whether to implement new proposals, a system which is known as ‘top-down anchor’.
Here is a look at what the proposals are, who reportedly is for and against it, and when a vote will take place.
What is the potential new system?
The new proposals that are set to be voted on centre around a system called ‘anchoring’, as well as a squad cost ratio rules.
The anchoring part of the proposal would limit clubs limited to spending no more than five times the broadcast and prize revenue earned by the team finishing last in the Premier League.
Based on some reported figures, that would be around £550m.
After the proposals were made public this week – many have critisied it is a salary cap. It would not be an individual salary cap, but is seen as a collective one that limits spending.
The Premier League did explore anchoring back in March when clubs first voted. It was reported that 16 clubs were in favour, while Man United, Man City and Aston Villa voted against it, according to The Times.
Another option for Premier League clubs is set to be the squad cost ratio model, similar to that of the UEFA financial sustainability rules. UEFA limit clubs’ spending on wages and transfers to 70 per cent of their annual revenue. If clubs voted for this system, their threshold would be 80.
Also part of the proposal are potential sanctions for not complying with a new system. According to reports, one sanction could be a six point deduction plus an extra point for every £6.5m a club goes over the threshold.
What have clubs said?
Clubs haven’t said anything publicly at the moment – but The Times states that Man City and Man United are firmly opposed to the measure, stating it could weaken English clubs’ in Europe.
They also claim that some lower and mid table clubs are in favour. They believe a cap on what is spent could narrow the financial gap between those and the league’s elite clubs, creating a more even playing field.
When will a vote take place?
A final vote is expected to take place at the Premier League’s November meeting.
If approved, it would mean the Premier League is the first major league in the world to introduce what is seen as a structured salary cap.
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