Premier League clubs had the chance to push through new financial rules for top-flight clubs but the new proposal will not be going ahead with those sides voting against it
Premier League
Premier League sides have voted against new financial rules
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Image: Getty Images)
Premier League clubs have voted AGAINST introducing a salary cap despite a major overhaul of the league's spending rules. The new proposals would have seen the previous financial rules binned in favour of a new approach.
All 20 clubs came together to vote on Friday having voted on Friday, it has been decided that a salary cap will not be part of the new system. 12 clubs voted against the proposal, while seven voted for.
However, some major changes have been introduced. A squad-to-cost ratio will be brought into force. This new guideline will effectively replace the profitability and sustainability rules (PSR).
Clubs are now limited to spending no more of 85% of annual revenue on “football costs”, and that is understood to account for transfer fees and the cost of coaching staff.
That system is very similar to one already in use in UEFA competitions, where a percentage of revenue can be spent on player expenses.
Anchoring in the meantime would have seen a limit put on clubs and how much they can spend on wages and amortisation of transfer fees. That limit would have been based on the amount distributed to the poorest club in the division, effectively putting clubs on an equal footing when it comes to transfer spending power.
But clubs in the Premier League have elected not to push through that proposal.
The previous approach with PSR allowed clubs to make losses of up to £105million over a three-year period.
There will be more to follow on this breaking news story and will bring you the very latest updates, pictures and video as soon as possible.
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