Man United and Man City in agreement as Premier League clubs to vote on salary cap

The Premier League are looking to overhaul their financial rules, with clubs set to take part in a three-part vote at the shareholders' meeting next month.

Both Manchester United and Manchester City are expected to vote against a new financial ‘anchoring’ rule, which is set to undergo a vote among Premier League clubs.

The Premier League is looking to overhaul its current financial rules. The Profitability and Sustainability Rules (PSR), which are in operation now, permit clubs to incur a loss of £105million over a three-year rolling period, with deductions made for expenses such as the women’s team and infrastructure.

One part of the new proposed rules is anchoring, which would limit clubs to five times the amount earned by the bottom club in the league from both prize money and broadcast revenue.

The Times reports that plans were first explored back in March, when clubs first voted on the issue. It’s said that 16 clubs were in favour. But United, City and Aston Villa voted against the idea while Chelsea abstained.

It is argued that the system would be an effective salary cap and would have a negative impact on clubs’ abilities to stay competitive in Europe. That would therefore damage the Premier League’s status as one of the strongest domestic competitions in the world.

It’s reported that there will be another vote on the anchoring rule next month at the next Premier League shareholders’ meeting.

The vote will be split into three parts: on squad ratio rules, which would be set at 85 per cent, anchoring, and sustainability rules linked with the new independent regulator.

As part of the proposal, the Premier League have also added in the possible sanctions for non-compliance. One of those is a minimum six-point deduction plus an extra point for every £6.5m over the threshold.

United co-owner Sir Jim Ratcliffe has already made his feelings on the proposed new rules clear.

“The last thing you want is for the top clubs in the Premier League not to be able to compete with Real Madrid, Barcelona, Bayern Munich, PSG — that’s absurd,” he said. “And if it does, it then ceases to be the finest league in the world.”

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