Premier League clubs are considering a major rule change which could have a huge impact on Manchester City and other teams near the top of the table.
According to The Times, Premier League clubs are 'seriously considering' introducing a spending cap to the top flight of English football that would link the amount any club can spend on wages to how much television money is paid to the lowest-placed team.
This 'anchoring' proposal would restrict the top teams to spend, for example, four times the amount the bottom club receive in TV money, though the exact proportion has yet to be defined.
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The plan is set to be discussed at the Premier League's annual meeting on Tuesday and Wednesday and is just one of several options put forward around cost control amid concerns over the competitive balance of the league.
Sources have told The Times the 'anchoring' proposal is being 'seriously considered' but is unsurprisingly facing 'strong' opposition from some of the top teams in the Premier League.
Official figures for the 2021/22 season showed the team finishing 20th, Norwich City, were paid £100.6m in TV money.
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If wage bills were restricted to four times that sum it would set the maximum at £402.4m.
The club with the highest wage bill that season was Manchester United, with £384m.
Liverpool ranked second for wages that season, with £366m, while Manchester City were third on £354m.
"This is a very clever concept because it is an adjustable spending cap which is tied to the lowest club's TV payment. It is also being seen as a safety measure," one source told The Times.
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"There are lots of worries about what will happen when the new Champions League format begins next year — it looks as though there will be a lot more money for those clubs involved, as well as for those clubs in the new Club World Cup.
"There is already a big financial gap and it is likely to get bigger. The strength of the Premier League has been its competitiveness and unpredictability and this proposal can help maintain that."
UEFA also planning new spending cap
European football's governing body UEFA is also planning to introduce its own cap on the total amount that clubs can spend on player wages and transfers in a single season as part of 'radical' plans to address concerns over competitive balance.
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It comes amid fears that English clubs could become even more financially dominant under UEFA's new Financial Sustainability Regulations (FSR).
From this year, FSR will restrict clubs' spending to a percentage of their annual revenue.
Clubs in European competition are only allowed to spend 90 per cent of revenues on wages and transfers in 2023, which then drops to 80 per cent next year and 70 per cent in 2025.
According to The Times, some of European football's leading clubs have argued that FSR could help Premier League sides continue to dominate the transfer market, with 16 of the top 30 richest European clubs hailing from the English top flight.
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The solution being favoured by UEFA is for a fixed cap every season to run alongside FSR, setting a limit on the amount that clubs can spend on wages, transfers and agents fees.
Featured Image Credit: AlamyTopics: Football, Premier League, Manchester United, Liverpool, Arsenal, Manchester City, Chelsea, Tottenham Hotspur