Premier League Rejects Spending Cap, Approves New Rules

Premier League clubs on Friday rejected a proposal to impose a spending cap linked to the league's bottom team's revenue but approved new financial regulations to replace the existing Profit and Sustainability Rules starting from the 2026-27 season.

At a shareholders' meeting in London, the 20 clubs voted 12-7 against top-to-bottom anchoring, with one abstention. The measure, which would have limited squad costs to five times the central payments received by the last-placed team, failed to secure the required 14 votes for approval. It had drawn strong opposition, including threats of legal action from the Professional Footballers' Association and several major player agencies, which argued the cap could restrict wages and breach competition law.

Instead, clubs unanimously backed the Sustainability and Systemic Resilience rules and approved the Squad Cost Ratio framework by the necessary majority. These changes, developed through consultations with clubs and stakeholders, aim to ensure long-term financial stability while preserving competitive balance. The Premier League stated that the reforms "promote the opportunity for all of its clubs to aspire to greater success" and align...