£550m! PFA Threatens Legal Action if Premier League Adopts Salary Cap
According to Camel.live reporters, the Premier League is divided over a new "salary cap" proposal, with the Professional Footballers' Association (PFA) threatening legal action if clubs vote to pass the rule known as “anchoring.”
As is well known, both Manchester clubs oppose the proposal. A club executive warned that the move would "strangle the world's top league" and that the entire league is “being passively led towards a disaster.”
In a strongly worded statement, the PFA said even if it does not act, "clubs within the Premier League will legally challenge the measure," sarcastically noting that "the only real winners in the end will be the lawyers." In response, a Premier League spokesperson stated that the PFA has had "multiple opportunities" to provide feedback on the proposal since March 2024.
The "top-to-bottom anchoring" rule is at the center of the controversy. It limits clubs' spending on "football squad costs"—including salaries, transfer amortization, and agent fees—to five times the broadcast and prize money revenue earned by the league's bottom club.
Based on 2023-24 season data, this cap is approximately £550 million. The proposed penalties are extremely severe: a second breach will result in an automatic 6-point deduction, with an additional 1-point deduction for every £6.5 million overspent.
Critics fear this will prevent Premier League clubs from competing financially with Real Madrid, Barcelona, and Bayern Munich in terms of salaries, leading to the loss of top stars like Erling Haaland and Mohamed Salah. Sir Jim Ratcliffe called the move "absurd." Currently, three of the top five clubs in Europe by salary expenditure are not from the Premier League.
Reports reveal that the Premier League's legal fees have soared to "nearly £100 million" over the past two years due to legal disputes with clubs. Some PFA insiders disclosed that they believe many clubs "have not fully understood the consequences of what they are being asked to vote on." Opponents also point out that while the rule ostensibly controls spending, it may actually "make owners richer in the short term" because they can or need to spend less on salaries.
This rule, along with the "Squad Cost Ratio (SCR)"—which limits spending to 85% of revenue—will replace the existing Profitability and Sustainability Rules (PSR), which allow for cumulative losses of £105 million over three years.
Opponents have used data to refute the Premier League's claim of a "competitiveness issue," noting that four different teams have won the title in the past decade, and the club with the highest salary expenditure has only claimed the championship three times in the last ten seasons.
The rule could have catastrophic consequences for the Championship. If the EFL follows suit, relegated clubs will face a salary cap of approximately £40 million, and clubs like Leeds United, Leicester City, and Southampton will “automatically breach the rule.”
A 25-page draft of the rule has been submitted to all clubs, with a vote scheduled for November 21. The rule requires the approval of more than two-thirds of clubs—14 in total—to come into effect next season.
