UEFA is planning to introduce new financial regulations which could have a massive impact on Premier League clubs if approved.
The summer transfer window opens for all English clubs in two weeks’ time and Premier League sides are once again expected to spend the most out of the all the major leagues in Europe.
Arsenal, Manchester United, Liverpool and the rest of the chasing pack are in the market for reinforcements as they attempt to bridge the gap to newly-crowned champions Manchester City.
But English clubs’ ability to outspend the majority of Europe could soon come to an end, if UEFA’s plans go ahead.
According to The Times, UEFA wants to introduce a 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.
It comes amid fears that English clubs could become even more financially dominant under UEFA’s new Financial Sustainability Regulations (FSR).
What is changing?
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.
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.
What would the cap be?
No level for the cap has been discussed but if it is eventually approved it would ensure that a club could not spend more than the limit even if it was within the 70 per cent of total revenue – helping to level the playing field for clubs across the continent.
The plan is being assessed by a new working party for European football, which includes representatives from UEFA, the European Club Association (ECA), the European Leagues and players’ union Fifpro.
Last month, UEFA president Aleksander Ceferin told Men In Blazers that “in the future we have to seriously think about a salary cap”.
Ceferin added: “It’s not about the owners, it’s about the value of the competition, because if five clubs will always win then it doesn’t make sense any more.”
However, the plans could be met with opposition from Premier League clubs, as well as from players across Europe.
