The highly controversial new financial restrictions for the Premier League could take effect as early as next month – a policy warned by some as "set to destroy the Premier League", with core provisions including an "85% revenue-based spending cap" and a "maximum £550 million team cost ceiling". Top clubs will vote on the "anchoring mechanism" in the coming weeks, and if more than two-thirds of clubs approve at the November 21 meeting, the new rules will be implemented next season.
Known as "top-to-bottom anchoring", the mechanism takes the total broadcast revenue and bonuses of the league's bottom-ranked team as the benchmark, requiring all teams' "squad costs" (including salaries of players and head coaches, transfer amortization, and agent fees) to not exceed five times that figure. Based on 2023/24 season data, this means the maximum team expenditure ceiling is approximately £550 million, and some clubs are already at risk of violating the rules. Meanwhile, the new rules will replace the existing "Profitability and Sustainability Rules" (which allowed losses of £105 million over three years) with the "anchoring mechanism + Squad Cost Rules (SCR)". The revised SCR clearly stipulates that spending must be controlled within 85% of a club's own revenue. The Premier League stated that the anchoring mechanism is a "proactive protective measure" that will only take effect when major changes threaten the league's competitiveness, but opponents argue it is essentially a hard salary cap.
The penalty for violations is equally severe: a second violation will result in an immediate 6-point deduction, with an additional 1-point deduction for every £6.5 million overspent. Both Manchester clubs have explicitly opposed the rules, arguing that they will undermine the Premier League's status as the "world's best league" – top European clubs like Real Madrid and Barcelona, as well as Saudi leagues, are not subject to such restrictions, which may lead to an exodus of top players such as Erling Haaland and Mohamed Salah. This would in turn cause a decline in broadcast revenue, creating a vicious cycle. Championship teams also worry that after promotion, they will find it harder to survive in the Premier League due to financial constraints, and the transfer flow between the Premier League and the English Football League (EFL) will also drop sharply. Sir Jim Ratcliffe, co-owner of Manchester United, has publicly expressed his opposition.
The Professional Footballers' Association (PFA) opposition poses a major obstacle, as they define the rules as a "hard salary cap". PFA insiders also revealed that many clubs have not yet understood the true impact of the content they are asked to vote on. Opponents further point out that spending restrictions will reduce clubs' motivation to reinvest and may even allow some owners to profit in the short term due to reduced salary expenditures. A 25-page draft of the proposed rules has been distributed to all clubs, and revisions may be made before the vote. Reporters have contacted the Premier League for comment, but no response has been received yet.
