Legal action from players and clubs against the Premier League is “inevitable” if a salary cap is introduced, according to the Professional Footballers’ Association (PFA) chief executive.
Discussions over the controversial introduction of new financial regulations continue and a decision over replacing profit and sustainability rules (PSR) with “squad cost ratios” and “top-to-bottom anchoring” (TBA) will take place next week.
“Squad cost ratios” would restrict Premier League clubs’ spending power, not allowing them to spend more than 85% of their yearly revenue. “Top-to-bottom anchoring” would result in a cap on total expenditure, including player wages, agents’ fees and transfer fees, and ensure clubs can only spend five times the income earned by the bottom club in the league via broadcasting and prize money.
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According to The Times, the PFA will hold talks with the captains of all 20 Premier League clubs next week ahead of a decisive vote on Nov. 21. Manchester City and Manchester United are among the teams known to oppose the introduction of TBA, while Arsenal were one of 16 clubs who voted in favour of exploring the new system during a vote in 2024.
Based on the 2023–24 season in which Sheffield United were the Premier League’s bottom club, spending would be limited to £550 million ($723.7 million) for all teams in the division, with some clubs already in breach of the potential new rules. They would therefore be forced to lower their spend should TBA come into effect.
However, the PFA have threatened legal action against the Premier League should fresh financial restrictions come into play, with a number of senior players and agents already opposed to the introduction of a salary cap and TBA.
Maheta Molango
PFA chief Maheta Molango has criticised potential new spending rules. / Simone Arveda/Getty Images
“Next week Premier League clubs will decide whether to replace present financial regulations with new spending controls. For the first time, this includes a salary cap,“ Maheta Molango, head of the PFA, told The Times.
“If those measures are introduced, some clubs would immediately be in breach of the new rules. This would require them to reduce spending and, as the player’ union, that affects our members. There are established consultation processes and requirements in the English game around such proposals.
“We do not believe the Premier League has met these and we have been clear that we will take measures to challenge the new rules if they are brought in.
The Premier League flag.
The Premier League flag has been flying high once again this season. / Catherine Ivill/AMA/Getty Images
“We are not the only ones. Clubs who view the changes as a clear restriction of trade will also take action. Competition specialists have raised eyebrows at the anchoring proposals, which have no precedent, and legal challenges are inevitable.”
In response to PFA criticism over the issue, a Premier League statement read: “We disagree with the PFA’s views regarding the proposed financial rules and the extensive consultation process we have been conducting.
“The PFA has had numerous opportunities since March 2024 to provide feedback on, and shape, the proposals. Where the League has received feedback, including the PFA, we have considered it carefully and, where appropriate, incorporated it into formulating the draft rules.
“It is [our] objective to maintain the Premier League’s value, competitive balance and ensure clubs operate in a financially sustainable way.”
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