Premier League clubs have voted against the introduction of a new "top-to-bottom anchoring" spending rule, despite agreeing to other significant changes to financial regulations. The decision came after a vote on Friday at a shareholders' meeting in London, where clubs discussed a range of proposed financial measures.
The rejected "anchoring" rule would have capped club spending on wages, transfer fees, and agent fees to five times the amount of central income received by the Premier League's bottom club. For example, if the rule were in effect now, spending would be capped around £550m, as Southampton earned £109.2m in central payments for finishing last in the 2024-25 season. It is forecast that had anchoring been in place for the current 2025-26 season, expected increases in distributions to clubs following the start of a new TV deal cycle would have lifted the anchoring limit to £600m. Twelve clubs voted against the proposal, failing to reach the threshold of 14 votes needed to pass.
Despite rejecting anchoring, Premier League clubs approved a "squad cost ratio" (SCR) system and "Sustainability and Systemic Resilience rules" (SSR). The SCR will replace the current Profitability and Sustainability Rules (PSR), which allow clubs to make losses of up to £105 million over three years. Under the new SCR, clubs will be limited to spending 85% of their annual revenue on "football costs," including transfer fees and coaching staff costs. This is similar to UEFA's existing rule, which limits clubs in European competitions to spending 70% of their income on player expenses. The vote for the SCR was 14-6, with both Manchester United and Manchester City flipping their stance, which saw the proposal approved.
The SSR aims to ensure clubs' financial health through a series of tests. These tests will assess clubs' ability to handle known outgoings and revenue fluctuations, as well as evaluate their long-term financial outlook and balance sheets. All 20 clubs voted in favor of the SSR.
The Premier League could have faced legal action from players if anchoring had been approved, with the Professional Footballers' Association (PFA) raising concerns about the potential impact of a salary cap. Three leading football agencies also threatened to sue the Premier League if the new rules were voted through, claiming they were not consulted. The Premier League claimed that the PFA had been given “numerous opportunities” to share its view on the proposed changes.
These changes mark a significant shift in the Premier League's approach to financial regulation. The SCR limits the amount clubs can spend on wages and transfer fees for their squads and head coaches, as well as agent fees, to 85 per cent of their total income. The previous approach with PSR allowed clubs to make losses of up to £105million over a three-year period. Nottingham Forest and Everton were previously charged and had points deducted under the old system. Both Man City and Leicester City currently have ongoing legal battles following respective charges. The previous rules will remain in place for the remainder of the current campaign. The new financial regulations are set to begin from the start of the 2026-27 season.
