- PFA and clubs like City and United oppose the proposal.
- Guardiola says Premier League will stay strong despite salary cap plans.
- Rule would limit spending to five times the lowest club’s revenue
Manchester City manager Pep Guardiola has dismissed worries about a proposed Premier League salary cap, insisting that England’s top flight will always be a strong league.
Ekohotblog reports that the 20 clubs are set to vote on the new regulations next month, with City and local rivals Manchester United reportedly opposed and expected to reject the proposal.
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The proposed rule would limit clubs’ spending on player wages and transfers to five times the revenue of the league’s lowest-earning team, linking budgets to prize money and broadcast income to ensure financial fairness.
However, If implemented, Premier League clubs’ spending on players would be limited to £550m ($728m) per year, based on 20th-placed Sheffield United’s 2023–24 revenue of around £110m.
Manchester City’s latest wage bill stood at £412m ($553m), though some clubs could already breach the new limits if approved.
Suggested penalties include a minimum six-point deduction, plus one point for every £6.5m of overspend.
Meanwhile, English clubs currently operate under Profit and Sustainability Rules, which permit losses of up to £105m ($141m) over a three-year period.
The Professional Footballers’ Association (PFA) is considering legal action over the proposed rule, citing potential negative effects on players’ wages.
Several clubs, including both Manchester sides and Aston Villa, opposed the initial proposal when it was first raised in March last year, while Chelsea stood aside.
Despite his club’s opposition, Pep Guardiola believes the proposed salary cap would not significantly affect the Premier League’s competitiveness in Europe.
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