The Premier League is heading for a major legal confrontation with the Professional Footballers' Association (PFA) as top-flight clubs prepare to vote on a controversial new financial control system this month.
The Anchoring Proposal and Its Immediate Fallout
Known as 'top to bottom anchoring', the proposed rule would limit the amount any club can spend on their squad to a multiple of the broadcast revenue and prize money received by the bottom-placed team. Based on last season's figures, this would create an approximate spending limit of £550 million.
The system would operate alongside new 'squad cost ratio' rules, limiting spending to 85% of revenue, replacing the current Profit and Sustainability Regulations. The PFA has issued a stark warning, threatening legal action if the measure is ratified. Both Manchester City and Manchester United are known to oppose the system, believing it would undermine the Premier League's position as the world's premier football competition.
Warnings of an Exodus and Competitive Decline
Critics argue the anchoring rule would prevent English clubs from competing with European giants like Real Madrid, Barcelona, and Bayern Munich on player wages. They fear top talents such as Erling Haaland and Mohamed Salah could be lured away, with Saudi Arabian clubs also poised to benefit.
Manchester United co-owner Sir Jim Ratcliffe has labelled the proposal 'absurd', stating it would inhibit top clubs from competing internationally. An executive warned, 'This will kill the status as the best league in the world and all the money that brings. It feels like we are being sleepwalked into disaster.'
The proposal includes severe penalties for breaches, with a second offence triggering a six-point deduction, plus an additional point for every £6.5 million overspent.
Broader Implications and The Road Ahead
Opponents also warn the rule could reduce investment incentives and potentially enrich owners in the short term, as they would be limited in wage expenditure. There are significant concerns about the knock-on effect on the EFL Championship, which might feel pressured to adopt a similar model.
Had this system been active, at least four clubs receiving parachute payments - Leeds United, Norwich City, Leicester City, and Southampton - would have been in breach of a much lower cap.
The Premier League, already facing legal costs nearing £100 million over two years, is braced for another costly challenge. The PFA insists that such measures must be negotiated, not imposed unilaterally. A 25-page draft of the rules has been circulated, with a vote scheduled for November 21. If two-thirds of clubs vote in favour, the system will be implemented from next season.
