Premier League clubs' fear over squad cap issue emerges ahead of historic vote
Daily mirror October 21, 2025 07:39 PM

Premier League clubs are due to vote on the potential to introduce rules capping spending on playing squads, but concerns are growing that the concept may be adopted by the Championship.

On November 21 the clubs will vote on top-to-bottom anchoring (TBA), which would cap the amount any club could spend on their squad at five times the smallest central Premier League broadcasting and prize money payout.

In theory the move will create more competition and stop a club at the top with huge wealth spending sums that a newly promoted club could only dream of. Those in opposition of TBA say it would effectively create a salary cap with both Manchester clubs and Aston Villa voting against looking at it further last April.

Now clubs who would be deemed mid-table outfits or lower are becoming concerned that the idea could be taken on lower down the pyramid. Whilst they're in the top flight they are, generally, in favour of it, because it brings them closer to the top clubs.

But were any team to be relegated to the Championship they would have the benefit of parachute payments and, theoretically, be among the richest teams in the second tier. But their ability to reinvest ahead of a promotion push would be limited if their spending is limited to five times that of the lowest team.

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EFL chairman Rick Parry has spoken in the past about parachute payments creating huge inequality in the Championship and would certainly look at having TBA introduced if the Premier League adopted it.

The Professional Footballers' Association (PFA) is also opposed to the idea and has enlisted legal help to support its challenge. They have warned the Premier League it would be in "flagrant breach" of rules requiring it to consult. ESPN reports that the TBA proposal will be dropped before the meeting or fail to gain sufficient support in a vote.

Clubs also need to decide whether they want to stick with the existing, but still divisive, profitability and sustainability rules (PSR) or replace them with the new squad cost rules (SCR).

SCR would bring Premier League clubs into closer alignment with UEFA regulations and have been on trial in shadow form since the start of last season.

On the European scene clubs can only spend up to 70 percent of revenue on squad-related costs. The Premier League proposal is to introduce a limit of 85 percent for those not involved in European competition. Some though argue it would bring about a stronger correlation between success and revenue.

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