The idea of capping maximum salaries was discussed at the Premier League's annual meeting this week. However, despite not being unanimously approved, the idea remains in place and could become a reality in the future. Under this proposed system, every Premier League club would be limited to a maximum annual wage bill equal to four times the television rights revenue of the bottom-ranked club. Specifically, Southampton, who finished last in the Premier League last season, received £102.5 million from their television rights revenue. Therefore, no club would be allowed to spend more than £410 million on salaries in the upcoming season.
The salary budgets of star-studded collections are at risk of being controlled.
AFP
The aim of this regulation is to minimize the wealth gap, thereby increasing the competitiveness of the world's most famous national league. As with any idea, there is a polarization of praise/criticism, agreement/attack among Premier League clubs, so the likelihood of the salary cap becoming a reality remains uncertain. Understandably, the Professional Footballers' Association and high-earning stars like Kevin De Bruyne or Erling Haaland have all criticized it.
The disadvantage of the above regulation is that there is no specific figure for the long term. Based on Southampton's TV revenue this season, the salary budget of Premier League teams next season cannot exceed 410 million pounds. But the TV revenue of the bottom team next season is different, and there will be a different "salary ceiling" for the following season. And the player's salary is already signed in a contract with a term of many years, how can it be changed! Therefore, the only thing worth discussing here is the idea of controlling the salary ceiling, which the Premier League has never announced. Specifically, it seems that there is still a need to discuss further.
The advantage of this idea is that, if implemented quickly, strong teams in the English Premier League could be ahead of the curve and avoid being caught off guard if UEFA imposes salary caps on all European football in the near future. UEFA President Aleksander Ceferin has repeatedly stated that UEFA will quickly implement this idea (each European club will only be allowed to spend a maximum of 70% of its income on salaries and transfers). Conversely, English clubs may be at a disadvantage when competing with "rich" clubs in continental competitions. For example, if Manchester City, Manchester United, and Arsenal are capped at no more than £410 million as mentioned above, while Real Madrid currently spends £458 million per year and PSG spends £645 million per year, this would certainly be a disadvantage for English representatives in the Champions League.
Controlling the maximum salary budget means controlling the ability to attract stars - this is also a controversial detail within the Premier League. For strong teams like Manchester City, their revenue comes not only from domestic television rights, but also a large part from the Champions League. According to the principle of financial fair play, they should have the right to pay more salaries. And there is news: the money shared from the Champions League in the future could skyrocket by 30%, due to many different factors. Leveling the revenue of Premier League teams, by relying on the television rights of the national championship, and then leveling the "right to pay salaries", is unreasonable.
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