Manchester City and their fellow Premier League sides are potentially set to experience a change to the financial rules.
The Premier League implemented their current Profit and Sustainability Rules (PSR) ahead of the 2013/14 campaign, where clubs are not allowed to suffer losses exceeding £105m across a three-year period.
However, that is set to change to a ‘top-to-bottom anchoring’ model (TBA), subject to a vote in November, which would restrict the amount a club can spend on player wages, agents and transfer fees to just five times the income earned from broadcasting and prize money by the bottom club in the Premier League.
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Jim White has now shared what a source close to Manchester City told him about the new structure the Premier League are potentially going to implement.
Manchester City insider feels new rule would stop superstars from arriving in the Premier League
Speaking on talkSPORT, the Glaswegian said: “Now, I spoke to somebody from Manchester City last night and basically, their argument is that you can forget the Haaland’s coming to the Premier League in future, because the anchoring system would eliminate that happening.”
Last season, Southampton finished bottom of the Premier League, but still received an income of £109.2m in total.
Using that figure as a reference point for the potential new rules, it would mean every Premier League club could spend £546m on player wages, agents and transfer fees.
That does not feel too prohibitive for the Big Six to operate effectively.
It would – however – cause complications when it comes to luring the biggest names to England as the unnamed Manchester City source states, should the likes of Real Madrid not have to contend with the same financial restriction, for example.
Premier League might also adopt a SCR policy
UEFA currently use a Squad Cost Ratio rule to assess the financial purity of clubs involved in their competitions, which allows sides to spend no more than 70% of their income on player wages, agents and transfer fees, as well as a three-year average on player sale profits.
Premier League logo
Photo by James Gill – Danehouse/Getty Images
Adam Williams – Head of Football Finance and Governance Content for GRV Media – has mentioned to TBR Football that the Premier League are proposing an 85% cap that follows the same principle.
The vote is set to take place on 21st November, and the Premier League could end up adopting both the SCR and the TBA models if the majority of clubs opt for that pathway.