Premier League clubs vote against new financial measure critics called 'salary cap' | OneFootball

Introduction of top-to-bottom anchoring would have limited any club's spending on squad costs

Premier League clubs have voted against a new financial mechanism that would have put a hard spending cap on player-related costs.

12 of the 20 top-flight teams are understood to have voted against the introduction of top-to-bottom anchoring (TBA), which would have limited any club's spending on squad costs to five times the amount received in central income by the league's bottom club.

Opponents, including the Professional Footballers' Association (PFA), said the measure would effectively be a salary cap. The union had been preparing to take legal action if at least 14 Premier League clubs had backed the proposal.

Clubs have voted to bring in the Squad Cost Ratio (SCR) system, which will mean only 85 per cent of a club's football revenue can be used for on-pitch spending, including transfer fees, wages and agents' costs.

UEFA operates a similar model limiting clubs in its competitions to on-pitch spending equating to 70 per cent of revenue.

The Premier League said clubs would have a multi-year allowance of 30 per cent which they can use to spend above the 85 per cent limit, and that using the allowance would incur a levy. Once the allowance is used up, however, they will face sporting sanctions such as points deductions if they go above 85 per cent.

SCR will come into effect from the start of the 2026-27 season, with the existing profitability and sustainability rules (PSR) staying in place through to the end of the current campaign, the league said.

Clubs have also voted to bring in Sustainability and Systemic Resilience (SSR) rules. These will assess a club's short, medium and long-term financial health through three tests - Working Capital Test, Liquidity Test and Positive Equity Test - and come at a time when the top five tiers of English football are set to be subject to independent regulation.