The Professional Footballers’ Association (PFA) have reportedly threatened the Premier League with legal action if plans to bring in a salary cap are pushed through.
It comes ahead of a shareholders’ meeting next week, with the PFA having sent a letter threatening legal action to the 20 Premier League clubs on Wednesday.
Plans to bring in a so-called squad cost rule were voted in principle last year – a mechanism that prevents clubs from spending no more than 85 per cent of their total income on wages.
Already used by UEFA, albeit with a lower 70 per cent limit, the move would impact the wages clubs can spend on senior players, coaches and agents’ fees.
In short, the move is designed to improve the financial sustainability of clubs, but the Premier League is keen to introduce another measure that would work alongside the squad cost rule, one known as ‘anchoring’.
As per The Athletic, the Premier League believes giving clubs the chance to spend five times the central payment amount received by the team that finishes 20th in the table.
For the 2023/24 season, that would’ve been Sheffield United, who received £110million in central payments, meaning the highest spenders would’ve had a limit of £550m.
However, it’s something the PFA is strongly against, as they argue it would apply a hard limit on how much clubs are able to splash out on wages.
The boardrooms of big clubs across the Premier League are in agreement, with Manchester City and Manchester United among those reportedly against the idea.
But it isn’t a sentiment that’s shared throughout all of the league, as according to the same report, teams in the middle to lower section of the table would welcome the addition of ‘anchoring’ alongside squad cost rules.
It’s created some friction between clubs and the PFA, who claim the Premier League haven’t explained why it wants to bring ‘anchoring’ to the league, or given enough detail on how it would work in practice. As per the report, the Premier League strongly rejects this.
Speaking to The Athletic, a spokesperson for the Premier League said: “We have complied with PFNCC requirements and the PFA has had multiple opportunities since March 2024 to provide feedback on the rules and the principles that underpin them.
“Furthermore, squad cost ratio proposals were voted for, in shadow, by clubs at the June AGM.
“The squad cost ratio proposals under discussion align closely with existing UEFA financial rules, which a number of our clubs are already subject to. The objectives of the proposals include maintaining the Premier League’s competitive balance and ensuring clubs operate in a financially sustainable way.
“While we always remain open to discussions and feedback, we are extremely disappointed that instead of engaging with the substance of the proposals, the PFA has chosen to issue legal demands.
“Clubs will continue to evaluate the proposals with a view to bringing them to a vote at the appropriate time.”
It remains to be seen whether the changes will be voted on at the shareholders’ meeting next week.
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