The Premier League approved a revolutionary policy of spending limit which aims to keep it as a competitive competition in the face of the imbalance created by the current financial regulations. The idea is that the biggest clubs have a spending limit on the squad proportional to the income of the lowest in the category. For this, television and commercial income will be taken as the basis. The English press points out that the limit considered is that they can exceed spending 5 times the income of the group with the least collected of the aforementioned concepts.
Three teams would have voted against the Premier League’s proposal, which must be ratified at the Annual General Meeting (AGM) in June. Manchester City, Manchester United and Aston Villa They would have fought while the Chelsea he would have abstained, according to the English media. The reason is that they believe that even if they can match the Premier League, it will give them a disadvantage compared to the European rivals of the top clubs.
The principle, known as ‘anchoring’, will limit the amount of money each club can invest in their squad, both in transfers and salaries. Last season the team with the least revenue was Southampton, with 103.6 million pounds (about 121 million euros). This number will be multiplied by what has been approved (said x5 in some media), which will give an annual limit for any club in terms of salaries, amortization of signings and payments to agents. In the case of the last season it will be 518 million pounds sterling (605 million euros). Chelsea, for example, have surpassed this figure, although not Manchester City despite the fact that at other times they could have done so.
At the moment the debate continues on the numbers to be considered, for example whether domestic or international TV revenue. The proposal was compared to the salary cap of NBA where clubs that exceed this have to pay a significant amount that clubs that comply with the salary caps earn. In the case of the Premier, in principle, this will be a broader concept although it will also affect the maximum that can be paid in total to a squad.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
