HomePremier LeaguePremier League considering wage cap

Premier League considering wage cap

Premier League clubs are considering the introduction of a wage cap that would limit the amount spent on salaries amid fears over the competitive balance of the division.

The proposal – which is expected to be debated at the Premier League’s annual meeting this week – would see clubs limited to a wage cap that is linked to the amount of TV money paid to the team finishing bottom of the league.

 

The Premier League’s top teams would be restricted to spending, for example, four times the amount the bottom club receive in TV money, in a bid to prevent an even greater financial gap emerging between the Champions League clubs and the rest of the division.

There are concerns that the expansion plans for the Champions League could open up a bigger gap between clubs in Europe’s elite competition and the rest of the Premier League.

According to the Times the proposal is being ‘seriously considered’, but is expected to be met with opposition from the top sides.

If the cap was set at four times, the most recent statistics show that Manchester United – the highest wage bill in the Premier League during the 2021/22 season at £384m – would still be inside the imposed limit. That season Norwich finished bottom of the table and received £100.6m in TV money.

The proposal to tie the wage limit to the lowest club’s TV payment is described as a ‘safety measure’ and it could be introduced alongside UEFA’s new cost-control plans for clubs in European competition. The governing body are set to limit spending on wages and transfers to 70% of a club’s total revenue. The Premier League are planning a similar move, but with a higher percentage.

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Daniel
Daniel
1 year ago

Curious to see how this would impact the league dynamics and if itwould impact the level of the playing field for smaller club.

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