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On Monday, April 29, the Premier League clubs voted in principle to introduce a spending cap as part of the “squad cost” rules, which will come into effect from the 2025-26 season. It has been reported that the majority of the Premier League clubs have voted in favour of the spending cap at a Premier League stakeholders’ meeting in London.
The spending cap in the Premier League will be determined by the amount of money earned in television rights by the lowest-earning club. If the spending cap is approved in the upcoming Premier League Annual General Meeting in June, then it will replace the current Profit and Sustainability from the 2025-26 season.
As per the report from the Daily Mail, Manchester City and Manchester United opposed the spending cap move in the Premier League alongside Aston Villa. Apart from these three clubs, the rest of the field voted in favour of the move, while Chelsea decided to abstain from voting.
Notably, if 14 out of 20 clubs had voted in favour of the spending cap, it would have passed.
Moreover, It is understood that the spending cap “would result in the top teams being restricted to spending on transfers, wages and agents a proportion of the amount that the bottom club receives in TV money.” The idea behind its introduction is to ensure that the Premier League stays competitive rather than getting dominated by a couple of super-rich clubs.