The new scheme was reportedly agreed in a new referendum between the 20 clubs, with 16 voting for, three voting against and one abstaining. The idea of the cap is to limit club spending in the top division to a proportion of the amount the bottom club receive in television money.
There are still further discussions that need to be had around details such as the size of the cap, before the division holds its June AGM. The vote took place in London on April 29.
Each club in the top division is expected to be given assurances that the cap will not reduce their current spending levels. Known as “anchoring” the new cap, should it be fully passed, would limit the amount of money any club in the division can invest in their squad.
It will tie teams to a multiple of what the division’s lowest earners receive from the Premier League’s broadcast deal as well as other commercial deals. A looser multiple of five is also believed to have been floated, but even that could be set to change.
Last season, Chelsea had a purported squad cost of around £539m, which would put them above the cap. It would also mean Chelsea would have to reduce the cost of their squad drastically to avoid falling foul of the regulations.
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What are your thoughts on the ‘Anchoring’ salary cap proposal?
