How the Premier League's proposed new financial rules could impact Chelsea | OneFootball

Premier League clubs, including Chelsea, are set to vote on the proposed new financial rules, which would limit what each club can spend on players' salaries, according to reports.

The Premier League is looking to overhaul its financial rules, with the Profitability and Sustainability Rules (PSR) still currently in effect for this season.

The current PSR rules allow clubs to incur a loss of £105m over a three-year rolling period, with some expenses exempt, such as the women's team and infrastructure.

This could change very soon, as clubs in the top-flight division will soon vote on the proposed introduction of a new system.

The vote is said to be split into three parts: on squad-cost ratio rules, anchoring, and sustainability rules linked with the new independent regulator.

The anchoring rules are arguably the most controversial.

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The squad-cost ratio rules, described by critics essentially as a "salary cap", would limit the clubs' spending on players' wages to 85 per cent of revenue.

The anchoring rules, on the other hand, are even more drastic, as they would limit each club's maximum yearly football squad budget to around five times the revenue generated by the bottom-ranked team in the league.

The Daily Mail estimates this to be around £550m based on 2023/24 figures, while The Telegraph claims it would be roughly £600m.

Bear in mind that this football squad budget includes players' and coaches' salaries, transfer amortisation, and agents' fees.

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How could new financial rules affect Chelsea?

While it levels the playing field domestically, critics argue that it puts the Premier League teams at a disadvantage when competing with European giants such as Real Madrid, Paris Saint-Germain, Barcelona, and Bayern Munich.

"This will kill the status as the best league in the world and all the money that brings," one club executive told the Daily Mail.

"It feels like we are being sleepwalked into disaster."

While clubs have not released their latest financial figures, UEFA's European Club Finance and Investment Landscape report for the 2023/24 season gives us a rough idea on how it may impact Chelsea.

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The Blues were still below some clubs in terms of wage bills, but still ranked eighth-highest in Europe with £395m expenses on salaries in 2023/24.

If it stays around similar numbers, the wage bills would already occupy more than half of the estimated allowed yearly budget under the anchoring rules.

It would leave Chelsea little room to maneuver in the transfer market, despite their effort in balancing the transfer spending with player sales.

According to The Times, the Premier League already revealed the plans to explore these anchoring rules, with clubs voting on the issue in March last year.

Sixteen clubs were in favour, while Manchester United, Manchester City, and Aston Villa were against it. Chelsea? Abstained. So, the club's stance on this issue remains unclear for now.