The Premier League is about to implement an 85% spending cap + strict financial restrictions with a maximum cost of no more than 550 million

Hupu, October 16, according to the latest report from the famous Daily Mail reporter Mike Keegan, the controversial new "salary cap" system - which some people believe will destroy the Premier League - may become a reality as early as next month.

In the coming weeks, top clubs will vote on an "anchoring" system that would limit any team's spending to a multiple of the bottom team's total broadcast revenue and prize money.

It is known that both Manchester clubs are opposed to the system, as it will be run on the basis of new "team cost ratio" rules.

They believe this will deprive the Premier League of its status as the best league in the world and lead to a mass departure of the world's top players. Some also believe it will wreak havoc on the Championship, making it harder for promoted teams to survive in the top flight.

One executive said: "This will destroy the Premier League's status as the best league in the world, and all the money that comes with it. It feels like we are sleepwalking towards disaster."

The rule, known as "top-down anchoring", means that all clubs can only pay five times the cost of the bottom team, whose "team costs" include player and manager wages, amortization (transfer fees spread over the life of the contract) and agent fees.

Based on the data for the 2023/24 season, this means that the team's spending limit is approximately 550 million pounds, and some teams will face the risk of non-compliance.

To make matters worse, 6 points will be deducted for a second breach, and a further 1 point will be deducted for every £6.5 million of overspending.

Critics believe that the move will prevent English clubs from paying similar wages to other top clubs on the continent, which are not subject to such rules, and will lead to top players such as Haaland and Salah switching to clubs such as Real Madrid, Barcelona and Bayern Munich.

This may also increase the chances of stars flowing to Saudi Arabia. In the long run, such losses will undoubtedly lead to reduced television revenue, which could be catastrophic. Additionally, this will undoubtedly result in fewer transfers between the top flight and the English Football League (EFL).

Manchester United co-owner Sir Jim Ratcliffe has expressed his views.

As we all know, the PFA opposes this move because they believe it is a hard salary cap, and their opposition will undoubtedly cause major obstacles to the implementation of this mechanism. Some PFA insiders believe many clubs have yet to understand the implications of what they are being asked to vote for.

Opponents of the "anchoring" mechanism believe that since the club's reinvestment in the team will be limited, this will also reduce the club's motivation for investment growth. For some clubs, it could also result in owners becoming richer in the short term, as they will be limited in how much they can spend on wages.

The Premier League will introduce an anchoring mechanism, together with SCR (Controllable Cost Control), to replace existing profit and sustainability rules. The rules allow losses of £105m over three years.

The new version of SCR limits expenditure to 85% of income. They said the anchoring mechanism would be a "pre-emptive protective measure that would only come into effect if there were significant changes that would jeopardize the competitiveness of our league".

A 25-page draft of proposed rules has been submitted to clubs and will be voted on at a meeting on November 21. The draft may be revised at that time.

If more than two-thirds of clubs vote in favor, the system will be implemented from next season.

We have contacted the Premier League for comment.