Premier League top-flight clubs are expected to vote in the coming weeks on a new salary cap that limits the amount of money officials can allocate to their teams.
According to the Daily Mail, the rule that became known as "top-to-bottom anchor" would mean that all clubs could only spend up to five times the amount equivalent to the football squad costs of the team that finished last in the competition.
Expenses include player and coach salaries, amortisation (transfer fee spread over the duration of the contract), and agent fees.
Also according to the newspaper, based on the 2023-24 figures, this would mean an approximate limit of £550m that would result, according to the newspaper, in an immediate risk of violation by some clubs.
The proposal also provides that a second breach will be treated with a deduction of six points, with one additional point for every £6.5m in the event of overspending.
A 25-page draft of proposed rules has already been presented to clubs, with a vote expected at a meeting on 21st November. Changes can be made until then. If more than two-thirds of the clubs vote in favour, the system will come into effect from next season.
What does the opposition think about the new rule in the Premier League?
Liverpool's Mohamed Salah poses with the Premier League trophy on May 25, 2025
Clubs opposed to the new proposal believe the move would prevent English clubs from paying salaries similar to those offered by the continent's other top competitions, which would not be subject to such rules, and would see key players such as Erling Haaland and Mohamed Salah go to clubs such as Real Madrid, Barcelona and Bayern Munich.
The representatives claimed that three of the five highest wage payers in Europe are already teams that are outside the Premier League, causing an increase in the flow of stars to competitions in Saudi Arabia, for example.
The Daily Mail also pointed out that, over time, such a loss of investments would lead to a reduction in television revenues, in addition to causing fewer transfers in the English competition.
According to the newspaper, Manchester clubs are known to oppose the system, which would be applied under the new "squad cost ratio" rules.
"[The anchorage] would inhibit the top Premier League clubs, and the last thing you want is for the top Premier League clubs not to be able to compete with Real Madrid, Barcelona, Bayern Munich, PSG. This is absurd. And if that happens, the league is no longer the best in the world," said Manchester United co-owner Jim Ratcliffe.
With the anchoring, the Premier League - already beset by legal costs that reached nearly £100m in two years due to a series of battles with its clubs - would suffer further in the form of a legal challenge by the Professional Footballers' Association (PFA).
The PFA is known to oppose the measure, which it sees as a rigid salary cap, and its opposition would undoubtedly pose a major obstacle to its implementation. Some members of the Association believe that several clubs have not understood the implications of what they are being asked to vote on.
Those who oppose anchoring believe that it would also reduce the incentives of the clubs themselves in the institution, since there would be a limitation on how much they could apply to their squads.
For other teams, this could also result in wealthier owners in the short term, as there would be a limitation on how much they would have to spend on salaries.
Premier League planning
Manchester City's Erling Haaland celebrates on October 5, 2025
The Daily Mail stated that the Premier League would be ready to implement the anchoring along with the Squad Cost Ratio (SCR) to replace the existing profit and sustainability rules, which allow losses of £105m over three years. SCR limits spending to 85% of revenue.
The newspaper reported that the Premier League states that the anchoring would be a "preventive protection that will only take effect if there is a significant change that puts the competitiveness of our league at risk."
However, opponents reject that there is a competitiveness problem at the top of the league, given the series of fierce title fights, and argue that the main problem is at the bottom, which would be exacerbated by anchoring.
The opposition claims that four different teams have been crowned champions in the last decade and adds that five of Manchester City's eight victories were won on the last day of the season. Regarding squad costs, the club with the highest wage expenditures has won the title in three of the last 10 seasons.
Such a measure, also as pointed out by the Daily Mail, if it remains at a multiple of five, would mean that any relegated club would automatically be in breach of what would be a "ceiling" of £40m based on the 2023-24 values.
The newspaper reinforced that if the system had been in place, at least four clubs - Leeds United, Norwich City, Leicester City and Southampton - would have breached the system.
This article was originally published on Trivela.
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